Del Monte Foods Wins Approval of $509M Sale, Wind-Down Plan

Del Monte Foods Corporation II Inc. emerged from a year-long chapter 11 with its business carved among three buyers, a confirmed wind-down plan, and an intercreditor fight that outlasted the case itself. The U.S. Bankruptcy Court for the District of New Jersey confirmed the First Amended Joint Chapter 11 Plan on May 22, 2026, and the plan went effective on June 13, 2026 over a pending appeal by a minority secured-lender group whose emergency stay the court had denied ten days earlier.

The 139-year-old producer of canned fruits and vegetables filed for chapter 11 protection on July 1, 2025 under lead case No. 25-16984, carrying more than $1 billion in liabilities traceable to its 2014 acquisition by Del Monte Pacific Limited. The company entered bankruptcy with $912.5 million in debtor-in-possession financing and a court-supervised sale that split the business among Fresh Del Monte Produce, B&G Foods, and Pacific Coast Producers for roughly $509 million in minimum cash consideration. With assets sold and the plan effective, the estates are now in a Plan Administrator-led wind-down, while the Ad Hoc Group of Minority Secured Lenders continues to press appeals of both the confirmation order and the dismissal of its DIP roll-up adversary proceeding.

Debtor(s)	Del Monte Foods Corporation II Inc. (20+ jointly administered entities)
Court	U.S. Bankruptcy Court, District of New Jersey (Trenton)
Case Number	25-16984 (Lead)
Petition Date	July 1, 2025
Judge	Hon. Michael B. Kaplan
Parent Company	Del Monte Pacific Limited (Singapore Exchange: D03)
Funded Debt at Petition	~$1.235 billion
DIP Facility	$912.5 million ($500M ABL + $412.5M term loan, including $247.5M roll-up)
Sale Outcome	Three-way segment sale; ~$509 million minimum cash consideration
Confirmation Date	May 22, 2026
Effective Date	June 13, 2026
Plan Type	Joint chapter 11 wind-down plan
Claims Agent	Stretto

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Del Monte Foods Wins Approval of $509M Sale, Wind-Down Plan

What are the key takeaways from “Del Monte Foods Wins Approval of $509M Sale, Wind-Down Plan”?

Prepetition Capital Structure and the Super-Senior Stack

Del Monte carried $1.235 billion in funded debt at the petition date, layered across an asset-based revolver and three tranches of secured term debt with descending priority. The structure dated to the 2014 leveraged buyout and had grown progressively more senior-heavy as the company sought liquidity in its final prepetition years.

The funded-debt tranches. The prepetition ABL facility carried approximately $236 million outstanding, including $26 million in letters of credit, with JPMorgan Chase Bank, N.A. as agent. Above the term loans sat $395.5 million in Super-Senior First-Out Term Loans — upsized from roughly $236 million, with a $122 million incremental tranche added in April 2025 — followed by $468.8 million in Second-Out Term Loans and $135 million in Third-Out Term Loans. The Ad Hoc Term Lender Group, which later served as stalking horse and DIP lender, held 73.2% of the Super-Senior First-Out Loans and 61% of the Second-Out Term Loans entering the case. Parent Del Monte Pacific Limited held roughly $65 million in past-due intercompany payables tied to pineapple purchases and trade.

Interest burden and tightening liquidity. Annual cash interest expense rose from approximately $66 million in fiscal 2020 to $125 million in fiscal 2025, materially exceeding projected EBITDA for a business of roughly 2,780 employees. In early 2024, the ABL lenders conducted a new collateral appraisal that lowered advance rates and required additional reserves, tightening available liquidity heading into the 2024 pack season.

Acquisition Debt, the 2024 LME, and Canned-Food Decline

Del Monte's chapter 11 filing followed acquisition leverage, a 2024 debt restructuring effort and related litigation, declining canned-food consumption, a 2023 production build that preceded a sales decline, and steel tariffs that raised can costs.

Acquisition debt burden. On February 18, 2014, Del Monte Pacific Limited—dual-listed on the Singapore Exchange and Philippine Stock Exchange—closed its acquisition of Del Monte Foods' Consumer Products business from a group of funds led by Kohlberg Kravis Roberts for $1.675 billion, funded through roughly $745 million in equity and $930 million in long-term financing arranged by Citibank and Morgan Stanley. The transaction left Del Monte with $1.245 billion in secured debt at closing.

The 2024 liability management exercise. In 2024, Del Monte attempted a liability management exercise aimed at restructuring approximately $240 million in debt, using a drop-down structure that transferred key assets outside the reach of certain creditors. The restructuring drew lender litigation challenging whether the asset transfer improperly subordinated certain claims. The litigation was settled in May 2025, and the settlement required Del Monte to accept a loan modification that increased its interest expenses by an additional $4 million annually.

Consumer shift away from canned foods. Consumers have turned away from canned foods in favor of fresh, frozen, and refrigerated alternatives. Canned fruit and vegetable sales declined globally between 2019 and 2024, while fresh food grew in both value and units over the same period. Sarah Foss, global head of legal and restructuring at Debtwire, said consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.

Operational decisions and cost pressures. In 2023, Del Monte anticipated higher sales volumes and took on additional debt to fund increased production capacity. When sales instead fell in the following fiscal year, the company was left with surplus inventory, elevated costs, and increased promotional spending to move it. Grocery inflation also drove consumers toward cheaper store brands, and the company's U.S. private label retail business "contracted substantially" following plant closures in 2024 and 2025, according to the first-day declaration. Del Monte launched Joyba bubble tea in 2021 and expanded its broth portfolio, but those gains did not offset declines in canned fruits and vegetables. In June 2025, a 50% U.S. tariff on imported steel took effect, raising the cost of the metal cans Del Monte uses to package its products.

DIP Financing and the Roll-Up Structure

The company obtained an Interim DIP Order on July 2, 2025, enabling continued operations through the 2025 pack season when agricultural products are harvested and processed.

DIP financing structure. The $912.5 million DIP financing package consists of two facilities. The DIP ABL Facility provides $500 million in superpriority senior secured revolving commitments, with JPMorgan Chase Bank, N.A. as agent, carrying interest at SOFR plus 5.50%. It replaced the prepetition asset-based lending facility upon closing and funds working capital, including the agricultural inventory purchases that pack season requires.

The DIP Term Loan totals $412.5 million, with Wilmington Savings Fund Society, FSB as agent, structured as new-money lending plus a roll-up of prepetition debt. Of that total, $165 million is new cash infused into the estate, and $247.5 million is a roll-up of the prepetition Super-Senior First-Out Loans into DIP debt with superpriority administrative expense status. The term loan carries interest at SOFR plus 9.50%, split 1.00% cash pay and 8.50% payment-in-kind, elevating those lenders' prepetition claims ahead of other prepetition creditors.

Both facilities mature nine months after the petition date. The Final DIP Order was entered August 12, 2025, after a contested hearing process. At the interim stage, the court authorized $100 million in new-money borrowing and $150 million in roll-up loans, along with approximately $211.2 million in DIP ABL loans deemed funded to refinance amounts outstanding under the prepetition ABL facility.

The 363 Sale Process and Three-Way Segment Split

The sale process followed a structured timeline established by the Bidding Procedures Order entered August 13, 2025, which set a November 4, 2025 bid deadline and a November 12, 2025 auction. The Ad Hoc Term Lender Group—the same secured creditors providing the DIP term loan—served as the stalking horse bidder through a credit bid, with the bidding procedures permitting no break-up fees, expense reimbursement, or topping fees.

Auction outcome. The broader sale process remained active into January 2026, when Del Monte announced three successful bidders for substantially all of its businesses, displacing the stalking horse credit bid. The Notice of Successful Bidders reflects a sum-of-the-parts result: Del Monte Fresh Produce Company won the multi-business segment of primary canned-goods operations for $285 million plus a $10 million wind-down amount and closing restricted cash; B&G Foods North America won the broth and stock business, including College Inn and Kitchen Basics, for $110 million plus a saleable-inventory adjustment; and Pacific Coast Producers won the shelf-stable fruit business for a base of roughly $82.2 million plus $21.5 million, totaling approximately $103.8 million subject to adjustment. The combined minimum cash component reached approximately $508.8 million. According to the Goulding declaration, the gross proceeds exceeded the stalking horse bid by at least $7.5 million, and by more than $20 million once the $70 million DIP term loan claim waiver was accounted for.

Sale orders and asset transfers. On February 20, 2026, the court entered three separate sale orders approving the transfers free and clear of claims: Sale Order for Del Monte Fresh Produce, Sale Order for B&G Foods, and Sale Order for Pacific Coast Producers. Fresh Del Monte Produce took the JOYBA beverage brand and global Del Monte brand ownership subject to existing licensing; Pacific Coast Producers received rights to the Del Monte and S&W brands for shelf-stable packaged fruit and fruit sauces in the U.S., including Puerto Rico, and Mexico. Del Monte later completed the court-supervised sales across all business segments in March 2026, with B&G Foods closing on College Inn and Kitchen Basics for approximately $110 million.

Distinction from Fresh Del Monte. Del Monte Foods is not affiliated with Fresh Del Monte Produce, a separate publicly traded company that distributes fresh fruits and vegetables and was unaffected by the filing. Del Monte Pacific Limited's international operations, including Del Monte Philippines, are also not included in the U.S. chapter 11 proceedings.

Mediation Settlement and Intercreditor Litigation

The most contested feature of the case was the dispute between the majority Ad Hoc Term Lender Group and a separate Ad Hoc Group of Minority Secured Lenders, which a court-ordered mediation only partly resolved.

The global settlement. After mediation before Chief Judge Christine M. Gravelle, the debtors, the Official Committee of Unsecured Creditors, the Ad Hoc Term Lender Group, Del Monte Pacific Limited, and a Special Investigation Committee reached a comprehensive settlement, which the court approved through a settlement order entered February 20, 2026. The settlement established the $8,000,000 GUC Cash Recovery funded by the Ad Hoc Group from proceeds otherwise payable to DIP term loan lenders; an irrevocable waiver by the Ad Hoc Group of $70,000,000 of DIP Term Loan Claims in exchange for excluded real-property designation rights; and the subordination and waiver by Del Monte Pacific Limited of all recovery on its roughly $164,000,000 in general unsecured claims. The estates released avoidance claims against the consenting lenders, the prepetition ABL secured parties, Del Monte Pacific Limited, and Black Diamond Capital Management, and the committee terminated its litigation and investigation efforts under a standstill running from December 6, 2025.

Agricultural supplier disputes. Del Monte's agricultural suppliers commit to growing specific crops months or years in advance. Pacific Coast Producers and Morning Star Packing Company filed a Motion to Compel on July 17, 2025—two weeks after the petition date—seeking clarity on whether Del Monte would honor purchase commitments for crops already in the ground, and Seneca Foods Corporation filed its own Motion to Compel on October 27, 2025 under Bankruptcy Code sections 105(a) and 365(d)(2). The disruption reached growers directly, with reporting that the bankruptcy would result in roughly 420,000 California peach trees being removed as canning contracts disappeared, with the USDA providing $9 million in relief funding to assist affected farmers with removal costs and the transition to other crops.

DIP roll-up adversary proceeding. The Ad Hoc Group of Minority Secured Lenders—separate from the term lender group serving as stalking horse—filed a motion on December 5, 2025 seeking to be added to the case to protect its interests, which the court denied on December 17, 2025. Certain members of the group then commenced Adversary Proceeding No. 26-01018 on January 23, 2026, alleging that the majority lenders' receipt of $247.5 million in DIP roll-up loans breached the pro rata Sharing Provision in Section 2.17 of the Super-Senior Credit Facility. On May 11, 2026, Judge Kaplan issued an opinion on the majority lenders' motion to dismiss, followed by an order entered May 13, 2026 granting the motion in part under Rule 12(b)(6). The court dismissed Count I, the breach-of-contract claim premised on Section 2.17, with prejudice, reasoning that the provision excludes payments made in accordance with the credit agreement and that the roll-up loans were authorized under the court-approved Final DIP Order. Count II, breach of the implied covenant of good faith and fair dealing, was dismissed without prejudice, and the court allowed Count III, a declaratory-judgment claim, to proceed.

Minority lender appeals. The minority group sought appellate review at each stage. It first appealed the settlement order to the U.S. District Court for the District of New Jersey (No. 26-CV-02379-RK) on March 5, 2026 and sought direct certification to the Third Circuit, which the bankruptcy court declined to certify, treating the settlement dispute as too fact-intensive for immediate appellate review. After confirmation, the group filed a Notice of Appeal of the Confirmation Order on May 27, 2026 and an Emergency Motion to Stay the confirmation order pending appeal. The debtors, the committee, and the Ad Hoc Term Lender Group opposed the stay, and Judge Kaplan denied it on June 3, 2026, extending only the Bankruptcy Rule 3020(e) automatic stay through June 10. With the stay denied, the plan went effective June 13, 2026 notwithstanding the pending appeal. The minority members also appealed the adversary-proceeding dismissal order on May 27, drawing a conditional cross-appeal from the Ad Hoc Term Lender Group on June 10, and Judge Kaplan denied their motion to stay that proceeding pending appeal on June 22, 2026, paralleling the June 3 confirmation-order stay denial.

Against the consummated plan, the minority group pressed for direct appellate review, filing a motion for direct certification of its confirmation-order appeal to the Third Circuit on June 9, 2026. The debtors, the Ad Hoc Super-Senior Term Lender Group, and the committee opposed certification on June 18, arguing the issues are governed by settled, fact-bound law reviewed for clear error and lack the public importance that 28 U.S.C. section 158(d)(2) requires. The group's June 23 reply framed three questions it characterized as matters of first impression: whether retaining setoff and recoupment rights plus a speculative waterfall recovery is enough to avoid deemed rejection under section 1126(g); whether a court may shift to creditors the burden of proving contested section 507(b) claims in the section 1129(a)(11) feasibility analysis; and whether unsecured deficiency claims may be classified with the majority lenders' claims to avoid creating a rejecting class. After hearings on June 18 and June 25, Judge Kaplan denied direct certification on June 26, 2026, declining to send the confirmation-order appeal directly to the Third Circuit. With the confirmation-order record transmitted to the district court on June 25 and certification denied, the appeal proceeds in the ordinary course before the U.S. District Court for the District of New Jersey against an already-consummated plan.

First Amended Plan, Confirmation, and Effective Date

After closing the three-way sale, Del Monte pursued a joint chapter 11 wind-down plan rather than a reorganization. On May 5, 2026, the debtors filed the First Amended Joint Chapter 11 Plan and a companion First Amended Plan Supplement, describing the changes as technical clarifications that did not require resolicitation under section 1127, and a Second Amended Plan Supplement followed on the day of the combined hearing. The plan appoints a Plan Administrator to dispose of remaining assets, make distributions, and wind down the estates; establishes a Plan Administrator Reserve funded from sale proceeds; and appoints a Claims Oversight Administrator to reconcile general unsecured claims after the effective date.

Class treatment. The plan administratively consolidates the debtors for voting and distribution purposes. DIP ABL claims and other secured and priority claims are paid in full from sale proceeds. Class 3 Super-Senior Term Loan Claims and Class 4 General Unsecured Claims are impaired and share in distributable proceeds through a waterfall. Class 4 creditors receive a pro rata share of the $8,000,000 GUC Recovery contribution together with any remaining waterfall proceeds; without that contribution, general unsecured creditors were projected to receive no recovery. Existing equity in the parent debtor is cancelled with no recovery, and section 510(b) claims are likewise discharged with no recovery.

Voting results. Stretto's solicitation and tabulation declaration, filed April 28, 2026, reported that all three voting classes accepted the plan. Class 3 Super-Senior Term Loan Claims accepted with 179 ballots (74.17%) representing $462,199,495.91 (78.51%) in favor, against 49 rejecting ballots representing $160,940,523.13. Class 4 General Unsecured Claims accepted with 68 ballots (93.15%) representing $98,253,841.22 (99.87%). Class 5 Other General Unsecured Claims accepted unanimously, with three ballots representing $142,485,344.26. Certain Class 3 ballots received April 24, 2026 — one day after the deadline — were counted after the debtors waived the lateness defect.

Combined hearing. The combined hearing for final approval of the amended disclosure statement and confirmation was adjourned from May 7 to May 12, 2026 and held before Judge Kaplan at the Clarkson S. Fisher U.S. Courthouse in Trenton, following an interim March 17, 2026 solicitation hearing at which the court cleared the plan to go to a creditor vote. Ahead of the hearing, the Official Committee of Unsecured Creditors filed a statement in support, the Ad Hoc Super-Senior Term Lender Group filed an omnibus reply and joinder, and the debtors filed a Revised Proposed Findings of Fact, Conclusions of Law, and Order on May 11, 2026. A transcript of the May 12 hearing was filed May 15, 2026, with remote electronic access restricted through August 13, 2026.

Confirmation order. On May 22, 2026, Judge Kaplan entered the Findings of Fact, Conclusions of Law, and Order approving the amended disclosure statement and confirming the First Amended Joint Chapter 11 Plan, finding the debtors met their burden under sections 1129(a) and 1129(b). The order converted the plan's third-party release from an opt-out to a consensual opt-in mechanism, discarding all previously received opt-out forms and requiring parties to affirmatively submit an Opt-In Form distributed by Stretto; any party that does not opt in is neither a Releasing Party nor a Released Party, and the Minority Ad Hoc Group is explicitly excluded. The DIP Term Loan Claims were allowed in full subject to the $70,000,000 waiver contingent upon plan consummation, and META Advisors, LLC was appointed Claims Oversight Administrator.

Effective date and wind-down. The plan went effective on June 13, 2026, with the debtors filing a notice of the effective date and certain bar dates on June 12, 2026. The notice set a July 27, 2026 deadline for final professional fee applications and a rejection-damages bar date keyed to the later of the effective date or service of any deferred-decision rejection notice. With the effective date, the Plan Administrator construct took over the liquidation of remaining assets and distributions under the waterfall and the $8,000,000 GUC Cash Recovery, while the Claims Oversight Administrator began reconciling general unsecured claims; the debtors filed their first omnibus objection to claims on May 28, 2026, which the court sustained on June 26, 2026.

Claims reconciliation and wind-down housekeeping. The sustained omnibus objection sorted disputed claims into six schedules; the court disallowed and expunged the no-liability and unsubstantiated schedules in their entirety, modified the reclassified-claims schedule, and left the duplicate-claim schedules on the register as neither allowed nor disallowed, while adjourning treatment of six specific claims to a later date under a companion order. On July 1, 2026, the debtors served a Notice of Whole or Partial Satisfaction of Claims identifying claims paid in full for expungement from the register and claims paid in part for reduction to their remaining unpaid balance, continuing the Claims Oversight Administrator's reconciliation. Separately, the debtors resolved a dispute with AmAt Holdings, LLC over a $1,000,000 promissory note from the 2018 Plymouth Sale Documents on which AmAt had missed an October 2024 balloon payment; under a settlement approved June 22, 2026, the debtors assigned their interest in the note and a related subordination agreement to AmAt in exchange for a redacted payment due July 10, 2026, with mutual releases. The debtors filed their Final Ordinary Course Professional Fee Statement on June 30, 2026, covering compensation from the petition date through the confirmation date, ahead of the July 27, 2026 deadline for final professional fee applications.

Confirmation Objections and Third-Party Releases

Four parties objected to confirmation, most of them targeting the plan's release and exculpation framework.

U.S. Trustee objection. The Office of the U.S. Trustee objected to confirmation on April 28, 2026, arguing that the plan improperly deems creditors to consent to third-party releases through failure to opt out, and that the exculpation provision violates Third Circuit law by extending to non-fiduciaries and prepetition conduct. The U.S. Trustee also objected that the debtor releases and injunctions are overbroad, that the plan establishes an improper court gatekeeping role, that it improperly characterizes the plan itself as a settlement, that it impermissibly deems non-voting classes to have accepted, and that it improperly seeks a waiver of the 14-day stay under Bankruptcy Rule 3020(e). The debtors' agreement to convert the release to opt-in resolved this objection in part.

Minority secured lender objection. The Ad Hoc Group of Minority Secured Lenders, which had publicly argued the disclosure statement was uninformative and the plan unfair, filed a nine-argument objection to confirmation on April 28, 2026. The group argued that the plan fails to provide for payment of the Super-Senior Term Loan Lenders' section 507(b) claims and is not feasible; that it fails the best-interests test as to the group's members; that it impermissibly classifies similar claims into separate classes; that Class 3 should be deemed to reject the plan, which fails the section 1129(b) fair-and-equitable test and unfairly discriminates against the group's deficiency claims; and that the plan was not proposed in good faith. The objection challenged the waterfall, DIP claim treatment, the "Insufficient Funds" provision, the Wind-Down Budget, and the opt-out release provisions.

Adversary litigation plaintiffs objection. Certain members of the minority lender group that are litigation plaintiffs in the adversary proceeding filed a separate objection on April 28, 2026. They argued that the plan is not feasible because Article IX(B)(17) makes its effectiveness contingent on the outcome of the adversary proceeding, and that the non-consensual third-party release and injunction provisions could improperly enjoin or release their pending litigation, invoking the Supreme Court's decision in Harrington v. Purdue Pharma L.P.

Smucker objection. The J.M. Smucker Company objected to confirmation on May 4, 2026, contesting the debtors' position that Smucker remains obligated to fund a legacy pension plan after rejection of the Project Bay Purchase Agreement and asserting that it would cease payments to plan participants as of the effective date. Smucker also objected to the third-party releases to the extent they would impair its reimbursement claims against Del Monte Pacific Limited, which guaranteed the Project Bay agreement, and formally opted out of the releases.

Case Professionals, Retiree Committee, and Plant Closures

The debtors retained Herbert Smith Freehills Kramer (US) LLP as lead restructuring counsel and Cole Schotz P.C. as New Jersey co-counsel, with PJT Partners as investment banker running the sale process, Alvarez & Marsal North America providing financial advisory and chief restructuring officer services, and Stretto serving as claims and noticing agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors, which retained Morrison & Foerster LLP as lead counsel, Kelley Drye & Warren LLP as co-counsel, Miller Buckfire as investment banker, and Province, LLC as financial advisor. The court entered fee compensation orders on May 7, 2026, including $6,650,403.23 awarded to PJT Partners and additional awards to the other estate and committee professionals.

Retiree committee. On February 20, 2026, the court entered an order directing the U.S. Trustee to appoint an Official Committee of Retired Employees under section 1114 to represent non-represented eligible retirees, following the debtors' motion filed January 27, 2026. Approximately 1,100 former employees and eligible dependents participate in the Post-Retirement Benefits Program, which is expected to be terminated as part of the wind-down.

Plant closures and union agreement. As part of the wind-down, the debtors are closing the Modesto and Hughson, California facilities, both covered by a collective bargaining agreement with Teamsters, Warehouse, Cannery Workers and Helpers Unions Local 948. On March 3, 2026, the court entered a stipulation and consent order approving an operations wind-down beginning approximately April 7, 2026, severance per the CBA with a minimum 40-hour guarantee, a $500 monthly retention bonus for employees who remain through closure, and lump-sum severance for qualifying seasonal employees. The debtors confirmed compliance with both the federal and California WARN Acts, and conditioned severance on a general release of claims.

Key Timeline

The case moved from a July 2025 petition and same-day interim DIP relief to a January 2026 auction result, February 2026 settlement and sale orders, a May 22, 2026 confirmation order, and a June 13, 2026 effective date, with minority-lender appeals continuing afterward.

Date	Event
February 2014	Del Monte Pacific Limited acquires company for $1.675 billion
2024	Liability management exercise attempted; lender litigation filed
May 2025	LME lawsuit settled (interest expenses increased $4M annually)
June 2025	50% steel tariffs take effect, increasing can costs
July 1, 2025	Chapter 11 petitions filed in District of New Jersey
July 2, 2025	Interim DIP Order entered ($912.5M facility)
August 12, 2025	Final DIP Order entered
August 13, 2025	Bidding Procedures Order entered
November 12, 2025	Auction conducted; three successful bidders named
December 17, 2025	Minority secured lenders' motion to join case denied
January 23, 2026	Adversary Proceeding 26-01018 filed over DIP roll-up
February 20, 2026	Settlement order and three sale orders entered
February 25, 2026	Joint chapter 11 wind-down plan filed
March 5, 2026	Minority Ad Hoc Group appeals settlement order
March 17, 2026	Interim disclosure statement and solicitation hearing held
April 28, 2026	Confirmation objections filed; all three classes accept the plan
May 5, 2026	First Amended Joint Chapter 11 Plan filed with technical modifications
May 11–13, 2026	Adversary proceeding motion to dismiss granted in part
May 12, 2026	Combined disclosure statement and confirmation hearing held
May 22, 2026	Confirmation order entered; First Amended Plan confirmed
May 27, 2026	Minority group appeals confirmation order and moves to stay
June 3, 2026	Emergency stay denied (Rule 3020(e) stay extended to June 10)
June 13, 2026	Plan effective date; estates enter post-effective wind-down
June 22, 2026	Stay denied on minority lenders' adversary-proceeding appeal; AmAt Holdings settlement approved
June 26, 2026	Direct Third Circuit certification denied; first omnibus claims objection sustained
June 30, 2026	Final Ordinary Course Professional Fee Statement filed
July 1, 2026	Notice of Whole/Partial Satisfaction of Claims served

Frequently Asked Questions

When did Del Monte Foods file for chapter 11 bankruptcy, and why?

Del Monte Foods filed chapter 11 on July 1, 2025 in the U.S. Bankruptcy Court for the District of New Jersey. The 2014 acquisition by Del Monte Pacific Limited left the company with roughly $1.245 billion in secured debt, and annual interest payments nearly doubled from $66 million to $125 million. The company sought court protection after declining demand for canned foods, a 2024 debt restructuring effort, and new steel tariffs.

Is Del Monte Foods going out of business?

Del Monte Foods sold substantially all of its business segments to Fresh Del Monte Produce, B&G Foods, and Pacific Coast Producers for roughly $509 million in minimum cash and is closing its Modesto and Hughson, California plants under a court-approved operations wind-down. Judge Kaplan confirmed a joint chapter 11 wind-down plan on May 22, 2026, the plan went effective on June 13, 2026, and the debtor estates are now in a Plan Administrator-led wind-down. The Del Monte brands continue under their new owners, and parent Del Monte Pacific Limited's international operations, including Del Monte Philippines, were not part of the U.S. chapter 11 case.

Did the minority lenders stop the plan from going effective?

No. The Ad Hoc Group of Minority Secured Lenders appealed the confirmation order and sought an emergency stay, which Judge Kaplan denied on June 3, 2026, extending the Rule 3020(e) stay only through June 10. The plan went effective June 13, 2026 notwithstanding the pending appeal, and on June 26, 2026 the bankruptcy court denied the group's bid to certify its confirmation-order appeal directly to the Third Circuit, leaving the appeal to proceed before the district court.

What recovery will general unsecured creditors receive?

Class 4 general unsecured creditors share a pro rata interest in an $8,000,000 GUC Recovery contribution funded by the Ad Hoc Term Lender Group, plus any remaining waterfall proceeds. Without that contribution, general unsecured creditors were projected to receive no recovery.

What did the court rule on the DIP roll-up adversary proceeding?

In an opinion issued May 11, 2026 and an order entered May 13, 2026, Judge Kaplan granted the majority lenders' motion to dismiss in part. The court dismissed the breach-of-contract claim based on the Section 2.17 Sharing Provision with prejudice, dismissed the implied-covenant claim without prejudice, and allowed the declaratory-judgment claim to proceed.

Who is the claims agent for Del Monte Foods?

Stretto serves as the claims and noticing agent and filed the April 28, 2026 solicitation and tabulation declaration that reported acceptances from all three voting classes. META Advisors, LLC was appointed Claims Oversight Administrator to reconcile general unsecured claims after the effective date.

Is Fresh Del Monte Produce affected by this bankruptcy?

No. Fresh Del Monte Produce is a separate publicly traded company that is not affiliated with Del Monte Foods. The two companies share historical origins but have been distinct entities for decades, and Fresh Del Monte Produce acquired the multi-business segment through the court-supervised sale.

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