The publicly listed food company Del Monte's U.S. subsidiary has filed for bankruptcy and is currently assessing the financial impact
Canned food producer Del Monte Foods has filed for bankruptcy in the United States. Its parent company, Del Monte Pacific, stated that operations outside the U.S. are unaffected and is assessing the financial impact. As of the end of January, the parent company had an investment of $579 million and $169 million in receivables. Del Monte has secured approximately $913 million in financing to continue operations, and the bankruptcy restructuring will not affect other subsidiaries, ensuring stable operations in the future
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The parent company announced this news on Wednesday morning (July 2).
Del Monte Foods has secured approximately $912.5 million in debtor-in-possession financing to continue operations.
Del Monte resumed trading after the lunch break on Wednesday, closing down 4.69% at 6.1 cents.
The statement noted that Chapter 11 is a legal procedure in the United States aimed at restructuring a company's finances and operations. The company can continue operations under the existing management. This court-supervised process allows debtors to formulate a plan to address the company's existing debts and related obligations. During this period, a stay is typically implemented to temporarily halt creditors' collection efforts on debts.
The parent company emphasized that this bankruptcy restructuring does not involve any subsidiaries outside the United States and will not disrupt operations outside the United States. Business in Asia and internationally remains stable, consumer demand is resilient, and the supply chain is smooth, with future operations unaffected.
As of the end of January this year, the parent company's net investment in Del Monte Foods was $579 million (approximately SGD 737.72 million), and the parent company and its affiliates have $169 million in net receivables from Del Monte Foods and its subsidiaries. The parent company noted that the impairment amount will be determined after the audit is completed, and the latest updates on the related financial impact will be announced in due course.
Canned food producer Del Monte Foods has filed for bankruptcy in the United States. The parent company, Del Monte Pacific, listed on the Singapore Exchange, stated that business outside the United States is unaffected and is assessing the financial impact on the group
