Del Monte Pacific’s US unit files for bankruptcy

MANILA, Philippines — The US subsidiary of Singapore and Philippine-listed Del Monte Pacific Ltd. (DMPL) has filed a voluntary Chapter 11 bankruptcy process in a bid to restructure the company financially and operationally.

DMPL said that Del Monte Foods Holdings Ltd. (DMFHL) and certain subsidiaries commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of New Jersey on July 1, 2025.

As part of the Chapter 11 proceeding, DMFHL and certain subsidiaries will have access to approximately $912.5 million in debtor in possession financing to fund their ongoing operations.

DMPL said that the filing is part of DMFHL’s overall strategic plan aimed at maximizing value for its business operations and those of its subsidiaries.

The company said that DMFHL and its operating subsidiary, Del Monte Foods Corp. II Inc., would continue normal business operations throughout the process.

“DMPL does not expect these developments to cause any disruption to its operations outside the US,” it said.

Further, DMPL said the Chapter 11 filing does not relate to the company or to Del Monte Philippines Inc. and that DMFHL’s non-US subsidiaries, including in Latin America, are not included in the proceedings and continue to operate as usual.

“It is important to clarify Chapter 11 is a US legal process focused on the financial and operational restructuring of a company. Chapter 11 allows a company, through its existing management, to continue operating in the ordinary course,” DMPL said.

“This court-supervised process enables the debtor to formulate a process to address the company’s existing liabilities and related obligations, during which creditor debt collection efforts are generally halted by the imposition of a moratorium during the pendency of the proceedings,” it said.

According to DMPL, DMFHL has entered into a restructuring support agreement with a group of its term lenders holding certain of DMFHL’s secured debt.

The company said the agreement contemplates a sale of all or substantially all of the assets of DMFHL and certain of its subsidiaries, among other strategic transactions to be implemented through Chapter 11 proceedings in the US.

Del Monte Philippines, with its Asian and international businesses, meanwhile, continues to perform well on the back of resilient consumer demand supported by a strong and stable supply chain, DMPL said.

The company expressed confidence in Del Monte Philippines’ ability to maintain uninterrupted business operations going forward.

DMPL widened its losses in the first three quarters of its fiscal year 2025 primarily due to the underperformance of its US subsidiary.

The company incurred a net loss of $92.2 million during the nine-month period of its fiscal year ending April 30, 2025, higher than the $50.6 million net loss recorded in the same period the previous year.

The 13 percent higher sales in Del Monte Philippine for the period offset the two percent decline in sales of US subsidiary, Del Monte Foods Corp. II Inc. (DMFC).

DMFC reported a net loss of $40.5 million due to higher operational costs, unfavorable fixed cost absorption and increased interest expenses.

Last year, DMPL also deferred the planned initial public offering of US subsidiary Del Monte Foods Inc. as the company’s core categories in the US experienced a slowdown, most notably starting around January 2023, which then extended into and impacted fiscal year 2024.

Contributing factors for the slowdown included consumers eating out more and pantry loading less, sharp inflation and other economic factors like the reduction in COVID-related stimulus.