Enters into Restructuring Support Agreement with Key Financial Stakeholders
Initiates Voluntary Chapter 11 Proceedings to Implement Terms of the Agreement
Secures Commitment for $912.5 Million in Debtor-in-Possession Financing to Support Ongoing
Operations
Company Intends to Continue Serving Customers with High-Quality Food Products on an Uninterrupted
Basis
Del Monte Foods Corporation II Inc. (the “Company” or “Del
Monte Foods”), one of the country's largest producers, distributors and marketers of premium quality,
branded food products, today announced that it is pursuing a value-maximizing sale process as part of an
overall strategic balance-sheet restructuring. To facilitate this process, the Company and certain of its
affiliates and subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for
the District of New Jersey (the “Court”).
The Company has entered into a restructuring support agreement (“RSA”) with a group of its lenders
holding certain of the Company’s term loan indebtedness. The RSA contemplates the Company
undertaking a going-concern sale process for all or substantially all of the Company’s 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.
“This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options,
we determined a court-supervised sale process is the most effective way to accelerate our turnaround
and create a stronger and enduring Del Monte Foods. With an improved capital structure, enhanced
financial position and new ownership, we will be better positioned for long-term success,” said Greg
Longstreet, President and CEO of Del Monte Foods.
To support the Company’s strategic transactions and fund its ongoing operations, the Company has
secured a commitment for $912.5 million in debtor-in-possession financing, inclusive of $165 million in
new funding, from certain of its existing lenders, subject to Court approval. 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 in the ordinary course, including the Company’s pack season that is
presently underway.
Mr. Longstreet continued, “While we have faced challenges intensified by a dynamic macroeconomic
environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to
our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our
employees, growers, customers and vendors, as well as our lenders for their support in helping us
achieve our long-term goals."
To further enable the Company’s smooth transition into Chapter 11, the Company has filed a number of
customary “first day” motions that, upon Court approval, will enable it to continue business operations in
the ordinary course and on an uninterrupted basis, including delivering high-quality food products that are
healthy, delicious, and convenient.
Certain of the Company’s non-U.S. subsidiaries are not included in the Chapter 11 proceedings and
continue to operate as usual.
www.delomontefoods.com
