Del Monte Foods Corporation II Inc. has announced that it is pursuing a value-maximizing sale process as part of an overall strategic balance-sheet restructuring. The company has entered into a restructuring support agreement with a group of its lenders, which contemplates a going-concern sale process for all or substantially all of the company’s assets.
To support its strategic transactions and fund its ongoing operations, Del Monte Foods has secured a commitment for $912.5 million in debtor-in-possession financing. This financing, along with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process and fund the company’s ongoing operations.
The company intends to continue serving customers with high-quality food products on an uninterrupted basis. Its mission remains unchanged, focusing on expanding access to nutritious, great-tasting food for all.
A number of customary “first day” motions have been filed by the company to enable it to continue business operations in the ordinary course and on an uninterrupted basis. Certain non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue to operate as usual.
Source: https://www.prnewswire.com/news-releases/del-monte-foods-announces-strategic-action-to-strengthen-financial-position-and-pursue-a-value-maximizing-sale-302496385.html