Del Monte Pacific Ltd. (DMPL) sought to reassure investors and regulators following the Chapter 11 bankruptcy filing of its US subsidiary, Del Monte Foods Holdings Ltd. (DMFHL), emphasizing that the group remains financially stable outside the US.
In response to the Singapore Stock Exchange’s query, DMPL clarified that as of 30 April 2025, its current liabilities exceeded current assets by USD595 million on a group level (excluding DMFHL) and by USD382 million for the parent company alone. The gap, it said, is largely due to revolving loan structures in the Philippines.
However, the group expects to refinance or extend most of these obligations, with one major lender already agreeing to terms and discussions ongoing with others.
The company stressed that operations of its profitable Philippine subsidiary, Del Monte Philippines Inc. (DMPI), remain unaffected. DMPI generated USD226 million in positive cash flow in fiscal year 2025, benefiting from strong consumer demand, a stable supply chain, and consistent quarterly dividends to DMPL.
DMPL, which is also listed on the Philippine Stock Exchange, said that its management has assured that it is pursuing alternative funding sources and equity-raising initiatives while focusing on cost control, waste reduction, and productivity improvements.
DMPL said it has not guaranteed DMFHL’s debts and holds no contingent liabilities tied to the US business.
However, DMPL expects impairments on its USD579 million equity investment and USD169 million in receivables from DMFHL, which may lead to a capital deficit on its balance sheet. Final disclosures will be made by 31 July following auditor review.
