Del Monte Foods, a U.S. subsidiary of Singapore-listed Del Monte Pacific, has filed for Chapter 11 bankruptcy in the U.S. and launched plans for a potential sale of its assets under a restructuring support agreement with key lenders .
Chapter 11 Filing and Strategic Sale Plan
On July 1, 2025, Del Monte Foods initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey. This move follows an earlier debt restructuring in 2024 that resulted in lawsuits from lenders claiming disadvantage from the process.
The company simultaneously entered into a restructuring support agreement with several secured lenders to enable a “going-concern” sale of all, or substantially all, of its business units. CEO Greg Longstreet described the Chapter 11 process as a strategic step to “accelerate our turnaround and create a stronger and enduring Del Monte Foods”.
Financial Scope: Debt, Liquidity, and DIP Financing
Court filings estimate Del Monte Foods has between US$1 billion and US$10 billion in assets and liabilities, along with 10,000 to 25,000 creditors. The company secured US$912.5 million in debtor‑in‑possession (DIP) financing—which includes US$165 million of new capital—to support operations during restructuring .
DIP financing gives the company priority status on its assets and is commonly used to ensure business continuity under court supervision. This funding is crucial for daily operations and maintaining relationships with vendors and customers.
Background: 2024 Debt Restructuring and Lender Litigation
In 2024, Del Monte Foods underwent a complex debt swap arrangement—transferring assets to a new subsidiary, raising new loans, and redefining creditor payment hierarchy. This drop-down transaction enabled asset-backed borrowing, but sparked lawsuits from lenders who felt disadvantaged by the deal.
Litigation was adjudicated in the Delaware Court of Chancery earlier this year, leading to a settlement where certain lenders gained board representation, and Del Monte Pacific provided equity or funding assurances in response.
Market Reaction: Impact on Del Monte Pacific
Del Monte Foods is a unit of Del Monte Pacific Limited (DMPL), listed in Singapore and the Philippines. In response to the U.S. Chapter 11 filing, Del Monte Pacific’s Singapore shares dropped as much as 9.4%, later closing down 4.7%.
Analysts report the U.S. unit posted significant losses last year—around US$127 million in FY2024—due to rising costs and underperforming sales. Del Monte Pacific has meanwhile shifted focus to liquidity management and asset sales amid overall macroeconomic pressures.
What This Means for Stakeholders
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Employees & Operations: Del Monte Foods intends to maintain business-as-usual operations throughout the restructuring.
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Lenders: DIP financing provides existing lenders priority, and the reorganisation plan outlines a creditor hierarchy under court oversight.
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Del Monte Pacific: Continues to evaluate the impact and considers strategic options including equity infusion or sale of U.S. assets .
Looking Ahead: What Comes Next?
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Court-Supervised Sales Process
Del Monte Foods will proceed with a going-concern sale, guided by the restructuring deal. The outcome could involve partial or full sale to a strategic buyer. -
Securing Debtor‑in‑Possession Funding
The US$912.5 million DIP financing enables ongoing operations and supports the sale process. -
Stakeholder Oversight and Resolution
Creditors and the court system will closely monitor the sale process and any debt repayments aligned with the agreed hierarchy. -
Del Monte Pacific’s Strategic Decisions
DMPL has engaged financial advisers for valuation and may pursue investor interest or divestment options.
Final Take: A Turning Point for a Legacy Brand
Del Monte Foods, with a legacy spanning 135 years and known for iconic brands in canned fruit, vegetables, broths, and teas, now faces a critical restructuring phase.
The Chapter 11 filing and asset sale mark a strategic bid to preserve value and reset the company’s trajectory. Success depends on how effectively Del Monte executes the court-supervised sales process, redeems lender confidence, and navigates global market pressures.
As the restructuring unfolds, the focus will be on balancing operational continuity and preserving heritage brand value during this pivotal transformation.
