Background and Relevance
Del Monte Foods, a 135-year-old company known for its canned fruits and vegetables under the Del Monte brand, as well as College Inn soups and Joyba teas, has initiated bankruptcy proceedings in the U.S. under Chapter 11. This move aims to find a buyer and accelerate the company’s recovery, according to CEO Greg Longstreet.
Bankruptcy Filing Details
Del Monte Foods filed for bankruptcy protection on Tuesday, securing $912.5 million in financing to sustain operations during the process. The company intends to remain open and continue its business activities throughout the bankruptcy.
In a court filing in New Jersey, Del Monte Foods listed its assets between $1 billion and $10 billion and its liabilities between $10 billion and $25 billion. The number of creditors is estimated to be between 10,000 and 25,000.
Impact on Non-U.S. Subsidiaries
Some of Del Monte Foods’ non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue to operate normally, as stated by the company.
CEO’s Statement
“This is a strategic move for Del Monte Foods. After thoroughly evaluating all available options, we determined that a court-supervised sale process is the most effective way to expedite our recovery and build a stronger, more sustainable Del Monte Foods,” said CEO Greg Longstreet.
Key Questions and Answers
- What is Del Monte Foods doing? The company has initiated bankruptcy proceedings under Chapter 11 in the U.S. to find a buyer and accelerate its recovery.
- Why is Del Monte Foods seeking a buyer? After evaluating all available options, the company determined that a court-supervised sale process is the most effective way to expedite recovery and build a stronger, more sustainable business.
- How will this impact non-U.S. subsidiaries? Some of Del Monte Foods’ non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue to operate normally.
- How much financing has Del Monte Foods secured? The company has secured $912.5 million in financing to sustain operations during the bankruptcy process.
- What are the estimated asset and liability ranges? Del Monte Foods listed its assets between $1 billion and $10 billion and its liabilities between $10 billion and $25 billion in a court filing.
- How many creditors does Del Monte Foods have? The number of creditors is estimated to be between 10,000 and 25,000.
