The company told the Singapore Exchange and Philippine Stock Exchange that its $579-million equity investment and $169 million in receivables from DMFHL are now at risk of impairment. This is an accounting loss that would reduce the company’s assets and push its total equity into negative territory.
“These write-offs are likely to cause a capital deficit in DMPL’s balance sheet,” the company said in the filing.
Current debts exceed assets
Even without DMFHL, DMPL is already facing short-term pressure, with current liabilities exceeding current assets by $595 million at the group level and $382 million at the company level as of April 30, 2025.
This is mainly due to revolving loans tied to Del Monte Philippines Inc. (DMPI), which remains profitable but carries short-term debt obligations.
DMPL said it expects to refinance or extend those loans and has already secured agreement with a major lender.
Del Monte Philippines holds strong
The company emphasized that its core Asian business, particularly DMPI, continues to generate strong cash flow, amounting to $226 million in the year ending April 2025.
It also assured investors that it has not guaranteed any of DMFHL’s loans and does not expect the bankruptcy to disrupt operations outside the United States.
—Miguel R. Camus
