Del Monte's $45M Settlement Sparks Bankruptcy Filing

Del Monte Foods filed for bankruptcy after an expensive settlement with spurned creditors, led by Black Diamond, in April. The settlement payment led to an "unprecedented liquidity crisis" and the company's parent, Del Monte Pacific Limited, declined to provide a $45 million contribution. The issues date back to the pandemic, when demand for packaged goods surged, leading to excess inventory and complicated lending arrangements. The company had over $1 billion of debt after a 2014 sale to Del Monte Pacific Limited.