WALNUT CREEK, Calif., July 3 – Del Monte Foods Corporation II Inc. has filed for voluntary Chapter 11 chapter safety within the U.S. Bankruptcy Court for the District of New Jersey as a part of a broader strategic effort to strengthen its monetary place and pursue a value-maximizing sale of its property.
The meals firm, one of many largest producers and entrepreneurs of branded meals merchandise within the U.S., has entered right into a restructuring help settlement (RSA) with a bunch of lenders holding its time period mortgage debt.
The RSA outlines a court-supervised sale course of meant to safe the best or greatest provide for all or considerably all the firm’s property.
“This is a strategic step ahead for Del Monte Foods,” stated Greg Longstreet, President and CEO.
“A court-supervised sale is the best strategy to speed up our turnaround and place the corporate for long-term success.”
To help operations throughout the restructuring, Del Monte has secured $912.5 million in debtor-in-possession financing from sure current lenders, together with $165 million in new funding, topic to court docket approval.
The funds will assist keep enterprise continuity, together with throughout the firm’s ongoing pack season.
The firm has additionally filed a number of “first day” motions with the court docket to make sure uninterrupted operations, together with continued product deliveries, cost of worker wages, and honoring obligations to distributors.
Del Monte emphasised that its non-U.S. subsidiaries aren’t a part of the Chapter 11 proceedings and can proceed regular operations.
Founded almost 140 years in the past, Del Monte Foods stated it stays dedicated to delivering wholesome and handy meals merchandise to customers.
