A new board appointed by DMFHL’s lenders approved the move, which is part of a larger plan to restructure the business and maximize its value, a Philippine Stock Exchange filing showed on Wednesday.
The Chapter 11 filing gives DMFHL legal protection from creditors while allowing it to continue operating normally.
To fund operations during this process, the company secured $912.5 million in “debtor in possession” financing—a special type of loan that covers everyday business needs like payroll, supply orders, and logistics.
Non-US operations unaffected
DMPL emphasized that the bankruptcy filing is limited to its US business and does not affect operations in the Philippines or other non-US markets. Del Monte Philippines Inc. (DMPI) continues to perform strongly, supported by steady demand and a solid supply chain.
DMPL is still assessing the financial impact of the US fling, including any possible one-time accounting losses, but said its international operations remain stable.
Big picture
Del Monte Pacific Ltd. (DMPL) is a global food and beverage company known for its packaged fruits, vegetables, juices, and tomato-based products. It operates through subsidiaries in the U.S. and Asia, including Del Monte Philippines Inc. (DMPI).
The company’s U.S. operations have changed hands multiple times since 1979, with the brand eventually reunited under DMPL in 2014.
Investors advised to stay cautious
“Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company and to consult their financial, tax or other professional advisers if they are in doubt as to the action to take,” the company said in its filing.
"The company will make further announcements as appropriate in accordance with the requirements of the Listing Manual of the Singapore Exchange Securities Trading Limited and the Philippine Stock Exchange,” it added.
—Edited by Miguel R. Camus
