Del Monte Lenders Sue Peers Over Treatment From Bankruptcy Loan

Catalur Capital Management LP and others holding Del Monte Foods Corp. senior term loans accused a majority group of other lenders of improperly withholding benefits received from financing the canned fruit company’s bankruptcy.

Fidelity Management & Research Co. LLC, Davidson Kempner Capital Management LP and others financing Del Monte’s Chapter 11 proceedings violated a “sharing provision” in a 2024 lending agreement among first-out term loan lenders, according to a suit filed Jan. 23 in the US Bankruptcy Court for the District of New Jersey.

The plaintiffs, who hold about 6% of outstanding pre-bankruptcy debt of a $395 million facility, contend ...