Del Monte Pacific Limited Issues Important Update on Chapter 11 Auction Process of Indirect U.S. Subsidiary

Key Points from the Latest Corporate Disclosure

• Del Monte Pacific Limited (DMPL) has disclosed significant developments arising from the ongoing Chapter 11 bankruptcy proceedings involving its indirect U.S. subsidiary, Del Monte Foods, Inc., and affiliated entities.
• The U.S. subsidiary (the “Debtors”) has conducted a court-supervised auction process as part of the restructuring procedures approved by the U.S. Bankruptcy Court.
• The auction has resulted in the announcement of successful bidders and proposed transactions, which remain subject to further documentation, conditions, and final approvals, including by the Bankruptcy Court.
• DMPL clarified that it is not a debtor in the Chapter 11 proceedings and has not entered into any transaction related to the auction process. The parent company does not control the outcome of the U.S. restructuring process.

Implications for Shareholders and Potential Price Sensitivity

• The ongoing Chapter 11 process introduces risks and uncertainties that could have indirect implications for DMPL at the parent-company level, especially regarding its financial exposure to the U.S. food business.
• While DMPL is not directly involved, it continues to monitor developments closely and will provide updates as required under relevant laws and listing rules, or in the event of material changes.
• Importantly, DMPL previously deconsolidated its U.S. food business in line with accounting standards. The company has already recognized provisions against its investments, advances, and accounts receivable related to the U.S. business. This means that much of the anticipated financial impact from the Chapter 11 process has already been reflected in DMPL’s financial statements.
• The company cautions that forward-looking statements are subject to risks and uncertainties, and actual outcomes may differ materially from expectations. This could be significant for investors tracking potential recovery or losses related to DMPL’s historical U.S. investments.
• The auction outcome and any subsequent transactions could potentially affect DMPL’s valuation, especially if developments lead to material changes in the company’s financial position or prospects.

Detailed Overview of the Disclosure

Del Monte Pacific Limited’s board of directors has issued a statement regarding the ongoing Chapter 11 restructuring of its indirect U.S. subsidiary, Del Monte Foods, Inc. The U.S. Bankruptcy Court has approved auction procedures, resulting in the announcement of successful bidders for assets or businesses under the Debtors’ control. However, these transactions are not yet final and remain subject to further legal and procedural steps.

DMPL explicitly clarifies its role: it is not itself a debtor and has not participated in the auction transactions. The company does not have control over the outcomes of the proceedings, which are entirely under the jurisdiction of the U.S. courts and the respective Debtors.

Investors should note that DMPL previously deconsolidated its U.S. food business, with related financial provisions already recognized, as detailed in past financial statements. This reduces the direct financial exposure of DMPL to the U.S. entity, although indirect risks persist depending on how the Chapter 11 process unfolds.

The company commits to ongoing monitoring and timely disclosure of any material developments, which could be price-sensitive if they materially affect DMPL’s balance sheet, future cash flows, or strategic direction.

This update includes forward-looking statements that are subject to change based on known and unknown risks. Investors are advised to exercise caution and closely follow subsequent announcements from DMPL regarding the outcome of the U.S. subsidiary’s restructuring and any impact on the parent company.

Disclaimer

This news article is based on the latest official disclosure by Del Monte Pacific Limited and should not be construed as financial advice. The situation involves ongoing litigation and restructuring proceedings in the U.S., and outcomes may materially differ from current expectations. Investors are strongly advised to consult with professional advisers and review subsequent company announcements before making investment decisions.

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