Del Monte Pacific Ltd. (DMPL) of the Campos Group on Wednesday confirmed that its U.S. subsidiary, Del Monte Foods Holdings Ltd. (DMFHL), has filed for Chapter 11 bankruptcy protection as part of a comprehensive restructuring and asset sale process.
The financially distressed unit, which is set to divest all or most of its assets, will continue operating under court-supervised restructuring, backed by approximately US$912.5 million in debtor-in-possession (DIP) financing to fund ongoing operations. The board of DMFHL has initiated a value-maximizing sale strategy in line with a restructuring support agreement with its secured term lenders.
The bankruptcy filing marks a significant development for the once-iconic U.S. food brand, whose financial woes now trigger deconsolidation from DMPL’s books. As of January, DMPL’s net investment in its U.S. unit stood at US$579 million, with an additional US$169 million in receivables—both now potentially impaired pending audit results.
While the Chapter 11 process is confined to U.S.-based operations, Del Monte’s non-U.S. subsidiaries—notably Del Monte Philippines Inc. (DMPI) and operations in Latin America—remain unaffected and continue to operate normally. DMPI is reportedly performing strongly, supported by stable demand and supply chains.
DMPL emphasized that the U.S. filing has no legal bearing on its international businesses, and further financial impact disclosures will follow upon audit completion.
