WALNUT CREEK, CA — Del Monte Foods Corporation II Inc., a major U.S. producer and distributor of branded food products, has initiated voluntary Chapter 11 bankruptcy proceedings as part of a broader strategy to restructure its finances and pursue a value-maximizing sale of the business.
The company filed the petition in the U.S. Bankruptcy Court for the District of New Jersey and announced that it has entered into a Restructuring Support Agreement (RSA) with a group of its term loan lenders. The agreement sets the framework for a going-concern sale of all or substantially all of Del Monte’s assets, with the intent of obtaining the highest and best offer to benefit stakeholders.
“This is a strategic step forward for Del Monte Foods,” said President and CEO Greg Longstreet. “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”
To fund ongoing operations through the Chapter 11 process, Del Monte has secured $912.5 million in debtor-in-possession financing, which includes $165 million in new funding, subject to court approval. The company stated this financing, along with ongoing business revenue, will provide sufficient liquidity to continue operations, including its current pack season.
Del Monte emphasized that it intends to fulfill customer orders and continue working with vendors, suppliers, and growers throughout the process without interruption. Employees, business partners, and brand stakeholders have been assured the company will continue to operate as usual during the proceedings.
Certain non-U.S. subsidiaries of Del Monte are not part of the Chapter 11 filing and remain unaffected.
Del Monte Foods operates a portfolio of legacy brands including Del Monte®, Contadina®, College Inn®, JOYBA®, Take Root Organics®, and S&W®. The company is a U.S. subsidiary of Del Monte Pacific Limited and is not affiliated with Fresh Del Monte Produce Inc. or other international Del Monte entities.
Additional information and court filings related to the restructuring can be found at https://cases.stretto.com/DelMonteFoods.
