Del Monte Foods Files for Bankruptcy to Pursue Sale

Del Monte Foods Corporation II Inc. is pursuing a value-maximizing sale process as part of a balance-sheet restructuring. To facilitate this process, the company and some of its affiliates and subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey.

The company has entered into a restructuring support agreement (RSA) with a group of its lenders holding some of the company’s term-loan indebtedness. The RSA contemplates the company undertaking a going-concern sale process for all its assets, with the support of the lender group under the RSA, which is targeted at obtaining the highest or best offer to maximize value for all stakeholders.