WALNUT CREEK, Calif., July 3 – Del Monte Foods Corporation II Inc. has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey as part of a broader strategic effort to strengthen its financial position and pursue a value-maximizing sale of its assets.
The food company, one of the largest producers and marketers of branded food products in the U.S., has entered into a restructuring support agreement (RSA) with a group of lenders holding its term loan debt.
The RSA outlines a court-supervised sale process intended to secure the highest or best offer for all or substantially all of the company’s assets.
“This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, President and CEO.
“A court-supervised sale is the most effective way to accelerate our turnaround and position the company for long-term success.”
To support operations during the restructuring, Del Monte has secured $912.5 million in debtor-in-possession financing from certain existing lenders, including $165 million in new funding, subject to court approval.
The funds will help maintain business continuity, including during the company’s ongoing pack season.
The company has also filed several “first day” motions with the court to ensure uninterrupted operations, including continued product deliveries, payment of employee wages, and honoring obligations to vendors.
Del Monte emphasized that its non-U.S. subsidiaries are not part of the Chapter 11 proceedings and will continue normal operations.
Founded nearly 140 years ago, Del Monte Foods said it remains committed to delivering healthy and convenient food products to consumers.
