Del Monte Lender Group Challenges Bankruptcy Wind-Down Plan

Del Monte Foods Corp. minority lenders and the Department of Justice’s bankruptcy monitor objected to the food distributor’s bankruptcy plan over a purportedly defective voting structure and liability releases.

The company’s liquidating plan doesn’t properly pay certain claims the lenders say they’re owed and doesn’t provide the value of the collateral securing their loans, they argued in an objection filed Tuesday in the US Bankruptcy Court for the District of New Jersey.

Del Monte, one of the leading distributors of packaged food products in the US, filed for Chapter 11 last July to sell its assets. It reached a ...