Del Monte Pacific submits US$1.2 billion restructuring plan after US unit’s bankruptcy
Negative stockholders’ equity position triggers filing with the Philippine Stock Exchange
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[SINGAPORE] Mainboard-listed F&B group Del Monte Pacific has outlined a framework to address the group’s debt obligations, in a group capital and financial recovery plan submitted to the Philippine Stock Exchange (PSE) on Monday (Jun 1). The total debt perimeter subject to the restructuring is about US$1.2 billion.
The filing, also disclosed to the Singapore Exchange (SGX) on Tuesday, was triggered by a negative stockholders’ equity position at the parent company level.
“Del Monte Pacific’s stockholders’ equity is currently negative, arising from the impairment of approximately US$703.5 million recognised in FY2025 in connection with the performance and subsequent Chapter 11 bankruptcy of the company’s former US subsidiary, Del Monte Foods Holdings,” the announcement read.
Under PSE listing guidelines, companies with negative equity are required to submit a formal recovery road map.
Restructuring strategy
Del Monte Pacific said that its restructuring framework spans four entity levels within the group structure.
This includes the senior secured facilities at the Del Monte Philippines operating level, which is its principal operating subsidiary. It also includes holding company debt obligations at the Del Monte Pacific level and another debt facility associated with its S&W entity.
“The group’s intended framework is integrated in nature which addresses all material debt obligations within a single coordinated approach rather than through separate bilateral negotiations at each entity level,” it said.
The framework will cover debt restructuring at an operating subsidiary level, which involves the refinancing and restructuring of Del Monte Philippines’ existing credit facilities.
It will also address holding company debt treatment, under which Del Monte Pacific-level debt obligations will be restructured into instruments calibrated to the cash flow realistically available at the holding company level.
The restructuring also involves the resolution of hybrid instruments at Del Monte Philippines. The subsidiary has an existing hybrid financial investor instrument in the form of preference shares.
The company stated that “its resolution is a priority condition for the overall restructuring framework to become effective”.
Further, the company is considering various options to strengthen the group’s balance sheet, including potential equity-linked transactions at the subsidiary level and asset dispositions. But it noted that no transaction has been committed to at this stage.
The restructuring process will be structured across three broad phases.
Phase one, through July 2026, will involve internal alignment on the framework and preliminary lender outreach.
Phase two, from August to November 2026, will involve the engagement and negotiation with the group’s lenders and financial stakeholders on the framework, as well as execution of the legal documentation.
Phase three, in 2027, will see the full refinancing of Del Monte Philippines’ credit facilities at a sustainable leverage, repayment of holding company obligations, a complete exit of the hybrid instrument and a restoration of normal capital management capacity.
US bankruptcy and financial impact
Del Monte Pacific, which is 71 per cent owned by NutriAsia Pacific and Bluebell Group, lost effective control of its former US subsidiary, Del Monte Foods, in April 2025 after electing not to contribute a US$45 million subordinated loan as part of a litigation settlement.
Del Monte Foods and its downstream operating companies had experienced sustained financial and operational difficulties due to challenging US macroeconomic conditions, intense competition in the packaged food sector and the debt load carried since the original acquisition.
Del Monte Foods subsequently filed for bankruptcy protection in the US on Jul 2, 2025.
The deconsolidation of the US operations from May 1, 2025, removed about US$1.5 billion in consolidated liabilities from Del Monte Pacific’s balance sheet.
However, the company recognised a full impairment loss of US$703.5 million on its investment and receivables.
“The impairment of the Del Monte Pacific-level investment in Del Monte Foods Holdings produced a capital deficit at the… holding company level,” the announcement read.
“The group carries debt obligations across multiple entity levels that require restructuring to align with the cash flow capacity of the continuing business,” it added.
The group also noted that its current liabilities exceeded current assets by about US$769.4 million.
Del Monte Pacific said that its financial difficulties are structural rather than operational and do not affect the performance of Del Monte Philippines.
Shares of Del Monte Pacific on SGX were flat at S$0.089 as at 2.20 pm.
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