New Jersey, USA — Canned fruit giant Del Monte Foods has filed for Chapter 11 bankruptcy protection, less than a year after executing a controversial debt restructuring that drew legal backlash from sidelined lenders. The company announced on Tuesday that it has entered a restructuring support agreement with its lenders and has launched voluntary bankruptcy proceedings to implement the terms.
Del Monte secured $912.5 million in debtor-in-possession (DIP) financing, including $165 million in new funding from certain existing lenders. The company says the financing, alongside revenue from ongoing operations, will provide sufficient liquidity during the sale process and ensure continued operations and customer service.
According to a filing with the United States Bankruptcy Court for the District of New Jersey, Del Monte Foods lists both liabilities and assets between $1 billion and $10 billion.
The development ends a turbulent year for the borrower. In June, parent company Del Monte Pacific Ltd. skipped a scheduled loan payment tied to a lawsuit stemming from the company’s controversial debt overhaul.
The bankruptcy filing follows a 2024 debt restructuring that allowed Del Monte to move assets out of the reach of certain lenders — a maneuver referred to in financial circles as a “drop-down transaction.” This strategy enabled Del Monte to raise new capital by borrowing against the shifted assets, but also prioritized certain lenders over others through debt swaps and payment realignments.
Del Monte Foods said in its statement that it intends to pursue a “going-concern sale” of all or substantially all of its assets.
Despite the filing, the company emphasized that it would continue operations and serve customers without interruption during the restructuring process.
The case adds to a growing list of retail and consumer companies grappling with debt burdens and changing market conditions, and highlights broader risks in leveraged financing arrangements that leave some creditors vulnerable in restructuring maneuvers.