Del Monte Foods Parent, Creditors Reach Bankruptcy Settlement

Del Monte Foods Corp. II reached terms to settle legal issues among its Singapore-based parent and creditor factions, advancing the canned fruit company’s effort to sell itself and exit bankruptcy.

Del Monte lenders, positioned as lead bidders for the company’s assets via a debt forgiveness deal, agreed to fund an $8 million cash payment to general unsecured creditors and assume a corporate retirement plan as part of a mediated settlement package reported to the US Bankruptcy Court for the District of New Jersey.

A settlement term sheet included in a Dec. 19 report notes that Del Monte’s parent company will ...