DELMONTEPACIFIC.COM

CAMPOS-LED food and beverage producer Del Monte Pacific Ltd. (DMPL) is seeking alternative funding sources amid rising liabilities, following the recent bankruptcy filing of its United States business.

“The group continues to find new sources of funding to improve cash management, including incremental short-term lines from partner banks to meet its short-term obligations that will provide sufficient working capital financing for it to meet its objectives and future financial obligations,” DMPL said in a local regulatory filing on Monday in response to queries raised by the Singapore Exchange Securities Trading Ltd. on July 3.

DMPL said this as its current liabilities already exceeded its current assets as of end-April due to loans held by its Philippine business.

“As of 30 April 2025, the group’s and the company’s current liabilities, on a deconsolidated basis, without consolidating Del Monte Foods Holdings Ltd. (DMFHL), exceeded its current assets by $595 million and $382 million, respectively,” DMPL said.

“This is mainly driven by the loans of the Philippine subsidiary, Del Monte Philippines, Inc. (DMPI), being of a revolving nature as prescribed by local banking partners,” it added.

Despite this, DMPL said it expects to settle or refinance its liabilities as they fall due.

“We expect the company’s and DMPI’s long-term loans, including amortization, to be refinanced or extended. We have secured concurrence on such extension from a major lender, and we are in discussions with other creditors on the extension or refinancing of the remaining loans,” it said.

“Management has been pursuing equity raising initiatives as the group’s Asian operations have restored profitability,” it added.

DMPL said it also generated positive cash flow from DMPI’s operations, amounting to $226 million in fiscal year 2025, driven by consumer demand and a strong, stable supply chain.

The company is also focused on reducing waste and inventory write-offs, improving productivity for processed pineapple varieties over the next 12 to 24 months, and lowering DMPI’s fixed costs.

Meanwhile, DMPL said its balance sheet is expected to reflect a capital deficit due to write-offs from the recent bankruptcy filing of DMFHL in the US.

“With DMFHL’s Chapter 11 filing, we expect the company’s equity investment in DMFHL and certain receivables due from DMFHL and/or its subsidiaries to be subject to impairment. These write-offs are likely to cause a capital deficit in DMPL’s balance sheet,” it said.

As of end-January, DMPL’s net investment value in DMFHL was $579 million. DMPL and its affiliates also had net receivables amounting to $169 million from DMFHL and its subsidiaries as of the same date. 

On July 1, DMFHL and certain subsidiaries commenced voluntary Chapter 11 proceedings in the bankruptcy court for the District of New Jersey, granting access to $912.5 million in financing as the company restructures its finances and operations.

DMFHL’s board will also pursue a sale of “all or substantially all” of the assets of the company and certain subsidiaries as part of the Chapter 11 proceedings.

DMPL shares fell by 1.36% or four centavos to P2.91 apiece on Monday. — Revin Mikhael D. Ochave