(KNWA) — Canned vegatables and fruits producer Del Monte has filed for chapter and is searching for a purchaser, it introduced on Monday.
The almost 140-year-old firm mentioned in a information launch that it’s getting into Chapter 11 proceedings as a part of a restructuring help settlement with its lenders.
Del Monte President and CEO Greg Longstreet mentioned in a press release that submitting for chapter is a “strategic step forward” for the corporate.
On this June 22, 2006 file picture, Del Monte canned greens are seen on the market in Berkeley, Calif. (AP Picture/Ben Margot, file)
“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,” Longstreet mentioned. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”
The California-based producer mentioned that it has secured a dedication of greater than $912 million from its lenders to assist fund the corporate by way of the proceedings.
Del Monte mentioned within the launch that it intends to stay open and proceed operations by way of its chapter.
A submitting within the U.S. Chapter Court docket for the District of New Jersey mentioned that Del Monte has between $1 billion and $10 billion in each estimated liabilities and belongings. The variety of collectors is estimated at between 10,000 and 25,000, in keeping with the submitting.
CBS Information reported that Del Monte has confronted a difficult previous couple of years, issuing layoffs and making efforts to downsize by closing crops.
Different massive corporations have filed for Chapter 11 chapter in an effort to restructure. WeightWatchers, Ceremony Help, Publishers Clearing Home and décor retailer At Dwelling have all filed for Chapter 11 chapter this yr.
