Del Monte Pacific says debt settlement, asset sales approved

Del Monte Pacific says debt settlement, asset sales approved

Del Monte Pacific Secures Debt Settlement and Asset Sales in U.S. Bankruptcy Restructuring

Del Monte Pacific Ltd. (DMP), a Singapore- and Philippine-listed food and beverage company, announced on February 24, 2026 that it has reached a settlement with creditors of its U.S. subsidiary, Del Monte Foods (DMF), as part of an ongoing bankruptcy restructuring process. The settlement, approved by the U.S. Bankruptcy Court for the District of New Jersey on February 20, includes the sale of DMF's operating assets under Section 363 of the U.S. Bankruptcy Code. These transactions mark key progress in DMF's restructuring, which constitutes a significant portion of DMP's operations.

Under the approved plan, DMF's assets were auctioned, including its vegetable, tomato, and refrigerated-fruit business; the broth and stock segment, sold to B&G Foods; and shelf-stable fruit assets, excluding production facilities. Additionally, global ownership of the Del Monte brand and intellectual property was transferred, subject to existing licensing agreements. The settlement will be formalized through a Chapter 11 restructuring plan, pending court confirmation and customary conditions, though DMP emphasized there is no guarantee of approval.

DMP previously wrote down $703.5 million in DMF-related assets and deconsolidated the subsidiary from May 1, 2025, following its loss of control after skipping a debt payment in June 2025. The company reiterated that it does not anticipate recovering equity interests in DMF post-bankruptcy. Financially, the settlement does not alter DMP's previously disclosed impacts, including restated loans and debt restructuring efforts.

Shares of DMP fell 2.1% to S$0.092 on February 24, reflecting market reactions to the update. The restructuring underscores DMP's strategic focus on deleveraging and refocusing on core markets in Asia and the Philippines.