Del Monte maps out capital, financial recovery plan

MANILA, Philippines — Singapore and Philippines-listed Del Monte Pacific Ltd. (DMPL) has mapped out a capital and financial recovery plan to address its debt obligations.

In a stock exchange filing, DMPL said the company is pursuing a comprehensive restructuring of the group’s capital structure.

The restructuring framework, it said, is expected to address the group’s debt obligations across all relevant entity levels, with the total debt perimeter subject to the restructuring approximately $1.2 billion.

“The group’s intended framework is integrated in nature, which addresses all material debt obligations within a single coordinated approach rather than through separate bilateral negotiations at each entity level. This is designed to prevent the proliferation of incompatible arrangements that could impair the group’s ability to refinance on an orderly basis,” the company said.

DMPL said it is considering a range of options to address the capital deficit, including equity-related transactions at the subsidiary level, refinancing existing facilities on improved terms, and proceeds from asset dispositions.

The company said it has been exploring these alternatives with various parties.

DMPL’s restructuring is expected to progress through three broad phases.

The first phase, which is expected to take place by July, involves internal alignment on the integrated restructuring framework, board endorsement, appointment and briefing of advisers, and preliminary lender outreach.

Phase two, targeted from August to November 2026, will cover engagement and negotiation with the group’s lenders and other financial stakeholders on the restructuring framework; execution of the necessary legal documentation to give effect to agreed arrangements; resolution of all outstanding obligations at each entity level; and pursuit of balance sheet strengthening initiatives.

The third phase, targeted for 2027, involves full refinancing of Del Monte Philippines Inc. (DMPI)’s credit facilities at sustainable leverage; repayment of holding company obligations; complete exit from the hybrid instrument; and restoration of normal capital management capacity.