Overview

• Del Monte Foods filed a voluntary Chapter 11 petition on July 1 and formalized a restructuring support agreement with key creditors to govern a strategic sale process.
• The company secured $912.5 million in debtor-in-possession financing to fund operations throughout the bankruptcy proceedings.
• Operations in its US business units continue uninterrupted under court supervision and certain non-US subsidiaries remain unaffected by the filing.
• Del Monte’s estimated assets and liabilities each range between $1 billion and $10 billion, and it counts an estimated 10,000 to 25,000 creditors.
• U.S. media have reported that an alleged pre-filing ‘drop-down’ asset transfer to a subsidiary meant to raise liquidity may have favored certain creditors, a matter now under judicial review.