Del Monte Pacific Limited’s US subsidiary, Del Monte Foods Holdings Limited (DMFHL), has filed for Chapter 11 bankruptcy in preparation for the liquidation of its assets, as directed by some of its creditors who recently took control of its board of directors.

Last May 5, 2025, DMPL disclosed to the Philippine Stock Exchange that a special shareholder formed by certain of the lenders of its US subsidiary has appointed a majority of directors to the board of DMFHL, and 25 percent of DMPL’s equity in DMFHL was transferred to the lenders.

It disclosed to the PSE today that “The newly constituted board of DMFHL has determined to pursue a value-maximizing sale process. The Company has been advised that DMFHL has entered into a restructuring support agreement (RSA) with a group of its term lenders holding certain of DMFHL’s secured debt.”

The RSA 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 U.S.

“Accordingly, DMFHL and certain of its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey on 1 July 2025 Eastern Standard Time.

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

It noted that, “It is important to clarify that Chapter 11 is a U.S. 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.

“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.”

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

Throughout this process, DMFHL and its operating subsidiary, Del Monte Foods Corporation II Inc., will continue normal business operations.

DMFHL’s non-U.S. subsidiaries, including in Latin America, are not included in the Chapter 11 proceedings at this time and continue to operate as usual.

“For the avoidance of doubt, the Chapter 11 filing does not relate to DMPL or Del Monte Philippines, Inc. (DMPI)… DMPL does not expect these developments to cause any disruption to its operations outside the U.S.),” DMPL stressed.

It added that, “DMPL, in consultation with its auditors, is evaluating the potential financial implications of this filing on the broader DMPL Group. Any material impacts, including possible non- cash impairment charges, will be disclosed in accordance with applicable listing rules.

DMPL said it is assessing the impact of deconsolidating DMFHL from its books. DMPL’s net investment value in DMFHL amounted to $579 million as of January 31, 2025.

In addition, DMPL and its affiliates have a net receivable of $169 million from DMFHL and its subsidiaries, including Del Monte Foods, Inc. (DMFI). The value to be impaired will be determined after the audit.