Key Takeaways:
- Del Monte Foods has filed for voluntary Chapter 11 to facilitate a value-maximizing sale process
- The company has entered a Restructuring Support Agreement (RSA) with key lenders
- A going-concern sale is planned for all or substantially all of its assets
- $912.5 million in debtor-in-possession (DIP) financing secured to support ongoing operations
- Non-U.S. subsidiaries are not included in the filing and continue to operate normally
Del Monte Foods Pursues Strategic Sale Through Court-Supervised Restructuring
Del Monte Foods Corporation II Inc., a long-standing U.S. producer and distributor of branded food products, has announced that it is commencing a court-supervised sale process as part of a broader balance-sheet restructuring. The company and select affiliates have voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey.
The sale process aims to identify the highest or best offer for all or substantially all of the company’s assets, in line with a Restructuring Support Agreement (RSA) reached with a group of existing lenders.
“This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, President and CEO. “A court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”
Debtor-in-Possession Financing to Support Operations
To ensure continuity of business and maintain operations during the process, Del Monte Foods has secured $912.5 million in debtor-in-possession (DIP) financing, subject to court approval. This includes $165 million in new funding, alongside ongoing cash flow from operations. The company expects this liquidity to support daily operations—including its current pack season—throughout the restructuring and sale process.
The company has also filed “first day” motions with the court to continue operations uninterrupted, including fulfillment of obligations to employees, growers, and vendors.
Chapter 11 Filing Focused on Del Monte’s U.S. Operations
The voluntary Chapter 11 filing applies only to Del Monte Foods Corporation II Inc. and specific U.S. subsidiaries. The company noted that certain non-U.S. entities are not part of the proceedings and continue operating as usual.
Outlook Amid Macroeconomic Pressures
In announcing the filing, Del Monte Foods acknowledged the pressures of a challenging macroeconomic environment but reaffirmed its long-term commitment to delivering accessible, nutritious, and convenient food products.
“Del Monte Foods has nourished families for nearly 140 years,” Longstreet said. “We remain committed to our mission and are grateful for the support of our employees, growers, customers, vendors, and lenders as we take this next step.”
