DEL Monte Pacific Ltd. (DMPL) and a “potential investor” are in preliminary talks regarding investment opportunities in its US subsidiary Del Monte Foods Holdings Limited (DMFHL), Del Monte Pacific said on Tuesday.
“These discussions are expected to be protracted, and the New Term Facility lenders have expressed support for this initiative,” DMPL said in a disclosure to the Philippine Stock Exchange.
Del Monte Pacific did not name the potential investor.
“Should these deliberations result in any material development for the Group, a formal announcement will be made in accordance with applicable disclosure requirements,” it said.
This follows after Del Monte Pacific ceded control of Del Monte Foods Holdings and three other US subsidiaries, including Del Monte Foods Inc., (DMFI) to settle a 2024 claim against DMFI.
Del Monte Pacific opted not to contribute $45 million to a settlement agreement it signed with a group of lenders that helped dismiss a claim against DMFI filed last year.
Del Monte Food Holdings is DMFI’s intermediate parent company.
The claim was filed in October by a group of supposedly DMFI creditors in the State of Delaware Court of Chancery, after DMFI signed a new term facility agreement in August last year to retire a 2022 loan.
The complaint alleged the DMFI defaulted on the 2022 loan following a new agreement and that it entitles the plaintiffs to remove the current directors of DMFI and two other DMFHL subsidiaries, and replace them with their own appointees.
“Following a thorough evaluation of the settlement contribution implications referenced in the 9 April 2025 announcement stemming from the litigation faced by Del Monte
Foods Holdings Limited subsidiaries (DMFHL), including Del Monte Foods, Inc. (DMFI), and certain of its directors, DMPL’s Board of Directors (DMPL Board) has decided not to provide any monetary contribution to DMFHL’s New Term Facility lenders to settle such litigation which had been dismissed with finality by the State of Delaware Court of Chancery,” the disclosure read.
Del Monte Pacific said it carefully considered the effects on the broader DMPL Group, saying the decision “protects the company’s interests and, importantly, will not disrupt the favorable business operations of its subsidiary Del Monte Philippines Inc. (DMPI.)”
The decision took into account the macroeconomic conditions in the US, DMFI’s historical financial performance, DMPL Group’s liquidity requirements, and the operational needs of DMPI.
“The review also took into account ensuring compliance with lender conditions, mitigating risks associated with increased financial obligations, and safeguarding shareholder interests,” the disclosure added.
