Del Monte unit transaction clears U.S. court

Del Monte Pacific Ltd. said a US bankruptcy court has approved a settlement and the sale of assets of its unit, Del Monte Foods Holdings Ltd. (DMFHL), under Chapter 11.

The Campos-led firm said the court approved “a settlement reached among the debtors, certain lender groups, the official committee of unsecured creditors and other stakeholders,” and “orders approving the sale of substantially all operating assets of the relevant debtor entities pursuant to section 363 of the US Bankruptcy Code.”

The company called the approvals “key milestones in the restructuring process,” noting the plan still needs court confirmation.

It cautioned that “there is no assurance that the plan will be confirmed or that the conditions will be satisfied.”

Del Monte Pacific said the approvals formalize a restructuring already reflected in its books, including a $703.5 million impairment on its investment in the affected entities.

Del Monte Philippines not affected

Non-US operations, including Del Monte Philippines Inc., remain unaffected.

Last year, DMFHL filed for Chapter 11 to restructure its business and debts while maintaining normal operations with access to $912.5 million in financing.