Del Monte Foods, an American food corporation, has entered bankruptcy protection for the first time in 135 years.
According to Reuters on the 2nd (local time), Del Monte Foods recently filed for bankruptcy protection under Chapter 11 of the federal bankruptcy code in the U.S. Bankruptcy Court for New Jersey, following a settlement with some key creditors.
Del Monte Foods has also stated that it is pursuing a plan to sell the company through the bankruptcy process. The company noted, "After reviewing various options, we determined that a sale process under court supervision is the most effective way to accelerate recovery and create a stronger and more sustainable corporation."
Del Monte Foods owns the canned and packaged fruits and vegetables brand "Del Monte," as well as the tea brand "Joyva." According to court filings, its assets and liabilities are estimated to be between $1 billion and $10 billion (approximately 1.3 trillion to 13 trillion won), with the number of creditors ranging from 10,000 to as many as 25,000.
The company stated that it plans to continue operations during the bankruptcy process and has secured $912.5 million (approximately 1.24 trillion won) for operational funding.
This bankruptcy filing applies only to its U.S. operations, and some overseas subsidiaries are not included in the process and will operate as usual, the company added.