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3w ago

Del Monte Foods Files for Chapter 11 to Pave Way for Asset Sale

It secured a $912.5 million debtor-in-possession financing facility under a restructuring agreement to maintain U.S. operations.

Del Monte canned tomatoes are seen among other nonperishable goods inside the West CAP Food Pantry in Boyceville, Wisconsin, U.S
FILE - In this June 22, 2006 file photo, Del Monte canned vegetables are seen for sale in Berkeley, Calif. (AP Photo/Ben Margot, file)
Del Monte Foods has voluntarily entered Chapter 11 and is looking for a buyer.
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Overview

  • Under a restructuring support agreement, the company launched a court-supervised going-concern sale process for substantially all of its assets.
  • Debtor-in-possession financing includes $165 million in fresh funds from existing lenders to support ongoing operations.
  • U.S. Bankruptcy Court filings estimate both the company’s assets and its liabilities at between $1 billion and $10 billion.
  • Del Monte’s non-U.S. subsidiaries are excluded from the proceedings and will continue to operate without interruption.
  • The filing follows a contentious 2024 drop-down debt restructuring and reflects pressure from shifting consumer tastes, supply-chain strains and a heavy debt load.