As of the third quarter of the end of January this year, the parent company's net investment in Demont Foods was US$579 million (approximately S$737.72 million), and the parent company and associates had US$169 million in net receivables for Demont Foods and its subsidiaries. The parent company pointed out that the amount of impairment will be determined after the audit is completed, and the latest situation of the relevant financial impact will be announced in a timely manner.
Canned food manufacturer Del Monte Foods officially filed for bankruptcy in the United States and implemented an asset sale and debt restructuring plan. Its parent company is Del Monte Pacific, a Filipino food company listed on the SGX. The parent company clarified that its Asian business will not be affected and will continue to operate normally.
The parent company decided in May this year not to pay the money for the settlement, resulting in the transfer of some equity and control to creditors.
The parent company issued an announcement on Wednesday (July 2) morning to announce the news.
Demont resumed trading after midday Wednesday, falling 9.38% to 5.8 points as of 1:30.
The statement pointed out that Chapter 11 is a legal process in the United States that aims to reorganize the company's finances and operations. Under Chapter 11 procedures, the company may be responsible for continuing to operate in a normal manner by the existing management. This court-regulated process enables debtors to develop plans to deal with the company's existing debts and related obligations. During this period, a moratorium is usually implemented, thereby temporarily suspending creditors' debt recovery actions.
Dermont Foods implemented a debt restructuring last year. The move sparked suing some creditors, saying they transferred some assets to an unreachable range and defaulted on a $725 million financing agreement, causing controversy in the industry.
The parent company emphasized that this bankruptcy reorganization does not involve other subsidiaries outside the United States and will not interfere with operations outside the United States. In particular, Asian and international businesses remain stable, consumer demand is strong, supply chains are smooth, and future operations will not be affected.
According to the statement, as part of the Chapter 11 bankruptcy proceedings, Debtor-in-possession financing has received debtor-in-possession financing) in total to continue its operations.