Del Monte Foods Enters Bankruptcy Proceedings in the United States
Del Monte Foods Corp. II Inc., known for brands like Del Monte and Contadina, has filed for Chapter 11 bankruptcy in New Jersey. The company aims to sell off assets to improve its financial standing and ensure long-term success. Del Monte Foods has secured $912.5 million in financing to support its operations during this process.
The American unit of Del Monte Pacific Ltd. (DMPL) in the United States has sought bankruptcy court protection and put assets up for sale as part of a rehabilitation program with creditors. Del Monte Foods Corp. II Inc., the company behind brands like Del Monte and Contadina, entered into Chapter 11 proceedings to restructure its operations.
The company aims to unload most of its assets to maximize value for stakeholders. Del Monte Foods' president and CEO, Greg Longstreet, stated that the sale process is a strategic move to strengthen the company for long-term success.
To support its operations during the sale process, Del Monte Foods secured $912.5 million in debtor-in-possession financing. This financing, combined with cash from operations, will provide liquidity and help revitalize the company.
Despite facing challenges, Del Monte Foods remains committed to its mission of providing nutritious food. The bankruptcy proceedings allow the company to address its liabilities and obligations while halting debt collection efforts.
DMPL is evaluating the financial impact of deconsolidating Del Monte Foods, with a net investment value of $579 million and a net receivable of $169 million as of January this year.
According to the source: Inquirer.net.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
