CITIZENS NEWS

Del Monte Foods files for Chapter 11 bankruptcy

By lauraharris // 2025-07-05

• Del Monte Foods has filed for Chapter 11 bankruptcy in New Jersey as part of a strategic restructuring, aiming to pursue a court-supervised sale of most or all of its assets.
• Despite the filing, the company assured that there will be no disruption to its product availability and day-to-day operations will continue as normal.
• The company cited liabilities between $1 billion and $10 billion and secured $912.5 million in financing, including $165 million in new funding, to maintain liquidity during the process.
• The filing follows a controversial 2023 debt restructuring that led to legal disputes with lenders after Del Monte shifted assets in a "drop-down" transaction to raise new funds.
• CEO Greg Longstreet described the move as a necessary step toward a stronger financial future, reaffirming the company's commitment to providing nutritious, affordable food.

Del Monte Foods, a household name in the canned food aisle for over a century, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey as part of a sweeping financial and operational restructuring. The 138-year-old food manufacturer, best known for its iconic canned fruits and vegetables, said the filing is a strategic step forward that will enable it to pursue a court-supervised sale process to maximize value and strengthen its capital structure. The company emphasized that the bankruptcy process is not expected to disrupt the availability of its products in the market. Del Monte Foods, a U.S. subsidiary of Singapore-based Del Monte Pacific Ltd., has entered into a restructuring support agreement with a key group of its term loan lenders. According to court filings, the company estimates that its assets and liabilities both fall between $1 billion and $10 billion. It has secured $912.5 million in debtor-in-possession financing, including $165 million in new funding, from existing lenders to ensure continued operations throughout the restructuring. (Related: Corporate America experiencing BANKRUPTCY BOOM as recession looms.) "This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and endure Del Monte Foods. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success," said Greg Longstreet, President and CEO of Del Monte Foods. Longstreet acknowledged the economic headwinds that have challenged the company but reaffirmed Del Monte's mission of delivering nutritious, accessible food. "While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders, for their support in helping us achieve our long-term goals," Longstreet continued. The company's brands include Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W, staples in American pantries for decades. Despite recent financial struggles, operations are expected to continue as normal while the company undergoes its restructuring. For now, Del Monte said it remains fully committed to delivering the same products that have fed American families for generations.

Bankruptcy filing follows controversial debt deal and legal turmoil

The bankruptcy filing follows a turbulent year for the company. In June, its parent company, Del Monte Pacific Ltd., opted to skip a loan payment as part of a legal settlement over a 2023 debt overhaul. That transaction, known as a "drop-down" deal, involved shifting key assets out of reach of certain lenders, allowing the company to raise new funds by borrowing against those assets. The move sparked legal action from excluded lenders, who claimed Del Monte defaulted on a $725 million financing agreement. As part of its restructuring at that time, Del Monte entered into a support agreement that outlined a court-supervised sale of most or all of its assets. The company says it has secured financing and expects to maintain sufficient liquidity through ongoing operations to continue serving customers during the sale process. Visit Collapse.news for more stories about businesses filing for bankruptcy. Watch this clip from the "Worldview Report" discussing bankruptcies in corporate America. This video is from the Worldview Report channel on Brighteon.com.

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Sources include: ZeroHedge.com DelMonteFoods.com Bloomberg.com Brighteon.com

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