The dispute began after a group of lenders rejected Del Monte’s $240 million debt restructuring plan in August 2024, which was designed to prevent default and keep the business afloat.
While 85 percent of lenders supported the plan, a smaller group, holding just 15 percent, sued in Delaware’s Chancery Court in October, claiming loan terms had been breached.
These lenders also tried to remove directors from Del Monte’s US subsidiaries and appoint their own by naming a new loan agent, Black Diamond, without the company’s consent.
Del Monte denied any default, calling the move improper under the 2022 loan agreement, and laid out its full defense in a post-trial brief filed April 3, 2025, after a February trial.
The case has now been dismissed through a settlement that raises Del Monte’s annual interest expense by $4 million.
Under the deal, Del Monte must contribute additional capital by May 5, or lenders will gain board control and access to a portion of its equity.
