Del Monte Pacific Ltd announces the successful resolution of a significant legal dispute involving its subsidiaries in the United States. The lawsuit, filed in October 2024 by a group of lenders under the 2022 DMFI Facility Agreement, has now been dismissed with finality following a negotiated settlement.
The plaintiffs alleged defaults and events of default under the 2022 DMFI Facility Agreement, claiming entitlement to replace directors of Del Monte Foods, Inc. (DMFI) and two other Del Monte Foods Holdings Limited (DMFHL) subsidiaries.
These allegations were vigorously contested by the defendants, and the trial concluded in February 2025. However, through proactive negotiations ahead of the post-trial hearing, Del Monte Pacific and certain lenders of a DMFHL subsidiary reached a settlement that not only resolved the dispute but retired all indebtedness under the 2022 DMFI Facility Agreement.
The settlement was funded through an incremental first-out loan from New Term Facility lenders, increasing the Group’s debts by US$20 million and annual interest expenses by approximately US$4 million.
Del Monte Pacific Ltd is committed to supporting its subsidiary by contributing equity or a subordinated loan by 5 May 2025. Failure to contribute could result in governance changes within DMFHL and partial application of Company equity toward settlement repayment.
This resolution underscores Del Monte Pacific’s dedication to safeguarding its governance and financial integrity while navigating complex legal and financial challenges. With the lawsuit now firmly behind it, the Del Monte Pacific Group is focused on strengthening its operations and delivering value to stakeholders.
