Latest news with #UnitedStatesBankruptcyCourt
Hindustan Times
02-07-2025
- Business
- Hindustan Times
Popular Canned food company Del Monte files for bankruptcy
Jul 02, 2025 08:24 AM IST Canned fruit company Del Monte Foods filed for bankruptcy, less than a year after executing a controversial debt restructuring. The firm entered a restructuring support agreement with lenders and started voluntary Chapter 11 proceedings to implement its terms, it said in a statement. It secured a commitment for $912.5 million in debtor-in-possession financing, inclusive of $165 million in new funding, from certain existing lenders. Bankruptcy filed in United States Bankruptcy Court for the District of New Jersey states that the company has both liabilities and assets estimated between $1 billion and $10 billion.(Reuters/Representational Image) A filing with the United States Bankruptcy Court for the District of New Jersey states that the company has both liabilities and assets estimated between $1 billion and $10 billion. The development ends a challenging year for the borrower that saw its parent company Del Monte Pacific Ltd. in June elect to skip a payment to the unit's lenders as part of a lawsuit settlement tied to a controversial debt restructuring. Also read: 'At Home' retail chain to file for Chapter 11 bankruptcy and close stores? All we know Del Monte Foods said in its statement that the restructuring support agreement contemplates the company undertaking a going-concern sale process for all or substantially all of its assets. Financing along with cash from ongoing operations is expected to provide sufficient liquidity during the sale process and fund ongoing operations, as it intends to keep serving customers, according to the statement. Del Monte Foods executed a debt overhaul last year, which became the subject of a lawsuit by left-behind lenders who said the company defaulted on a $725 million financing agreement when it shifted the assets away from the reach of lenders. The strategy, known in industry parlance as a drop-down transaction, allowed Del Monte Foods to raise fresh liquidity by borrowing against the transferred assets. The deal also prioritized participating lenders via debt swaps and created different payment priorities, Bloomberg reported.
Business Times
02-07-2025
- Business
- Business Times
Canned-food producer Del Monte Foods files for bankruptcy
[NEW YORK] Canned fruit company Del Monte Foods filed for bankruptcy, less than a year after executing a controversial debt restructuring. The firm entered a restructuring support agreement with lenders and started voluntary Chapter 11 proceedings to implement its terms, it said in a statement. It secured a commitment for US$912.5 million in debtor-in-possession financing, inclusive of US$165 million in new funding, from certain existing lenders. A filing with the United States Bankruptcy Court for the District of New Jersey states that the company has both liabilities and assets estimated between US$1 billion and US$10 billion. The development ends a challenging year for the borrower that saw its parent company Del Monte Pacific in June elect to skip a payment to the unit's lenders as part of a lawsuit settlement tied to a controversial debt restructuring. Del Monte Foods said in its statement that the restructuring support agreement contemplates the company undertaking a going-concern sale process for all or substantially all of its assets. Financing along with cash from ongoing operations is expected to provide sufficient liquidity during the sale process and fund ongoing operations, as it intends to keep serving customers, according to the statement. Del Monte Foods executed a debt overhaul last year, which became the subject of a lawsuit by left-behind lenders who said the company defaulted on a US$725 million financing agreement when it shifted the assets away from the reach of lenders. The strategy – known in industry parlance as a drop-down transaction – allowed Del Monte Foods to raise fresh liquidity by borrowing against the transferred assets. The deal also prioritised participating lenders via debt swaps and created different payment priorities, Bloomberg reported. BLOOMBERG
Mint
02-07-2025
- Business
- Mint
Canned-Food Producer Del Monte Foods Files for Bankruptcy
(Bloomberg) -- Canned fruit company Del Monte Foods filed for bankruptcy, less than a year after executing a controversial debt restructuring. The firm entered a restructuring support agreement with lenders and started voluntary Chapter 11 proceedings to implement its terms, it said in a statement. It secured a commitment for $912.5 million in debtor-in-possession financing, inclusive of $165 million in new funding, from certain existing lenders. A filing with the United States Bankruptcy Court for the District of New Jersey states that the company has both liabilities and assets estimated between $1 billion and $10 billion. The development ends a challenging year for the borrower that saw its parent company Del Monte Pacific Ltd. in June elect to skip a payment to the unit's lenders as part of a lawsuit settlement tied to a controversial debt restructuring. Del Monte Foods said in its statement that the restructuring support agreement contemplates the company undertaking a going-concern sale process for all or substantially all of its assets. Financing along with cash from ongoing operations is expected to provide sufficient liquidity during the sale process and fund ongoing operations, as it intends to keep serving customers, according to the statement. Del Monte Foods executed a debt overhaul last year, which became the subject of a lawsuit by left-behind lenders who said the company defaulted on a $725 million financing agreement when it shifted the assets away from the reach of lenders. The strategy — known in industry parlance as a drop-down transaction — allowed Del Monte Foods to raise fresh liquidity by borrowing against the transferred assets. The deal also prioritized participating lenders via debt swaps and created different payment priorities, Bloomberg reported. More stories like this are available on
Business Insider
06-06-2025
- Business
- Business Insider
Sunnova Energy to lay off roughly 55% of workforce
According to a regulatory filing, on June 1, 2025, Sunnova TEP Developer, LLC, a Delaware limited liability company and wholly owned subsidiary of Sunnova Energy (NOVA) International, filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. The TEPD Filing is not expected to have a material effect on our servicing operations for existing customers. On May 29, 2025, the Special Committee of the Board of Directors of the Company approved a reduction in force, effective May 30, 2025, of approximately 718 employees, or approximately 55% of the company's workforce, in order to reduce the company's operating expenses and in an effort to preserve value for stakeholders. The company expects that, in connection with the Reduction in Force, the impacted employees will be provided earned wages and salary, earned but unused paid time off, and a severance payment calculated in accordance with the applicable employee's severance plan. At this time, the company is not able, in good faith, to make a determination of the estimated amount or range of amounts of all such costs and charges to be incurred as a result of the Reduction in Force. The company will file an amendment to this report upon the determination of such amounts. The expected completion date for the Reduction in Force is not currently known.
Yahoo
07-05-2025
- Business
- Yahoo
Rite Aid bankruptcy: What to know about store closings, prescription transfers, layoffs, gift cards, and more
Beleaguered pharmacy chain Rite Aid has officially filed for Chapter 11 bankruptcy protection after weeks of media reports suggesting that it was on the cusp of doing so. Most Read from Fast Company The bankruptcy is Rite Aid's second in two years, and it leaves a lot of questions for both customers and employees, including whether stores will be closing, if there will be layoffs, and what happens to customers' prescriptions. Here's what you need to know about Rite Aid's second bankruptcy. Why did Rite Aid file bankruptcy the first time? Rite Aid originally filed for bankruptcy in 2023. It emerged from the process less than a year ago, in 2024, with the hopes of being in a better financial position and on more resilient footing. But with its second bankruptcy filing yesterday, those hopes seem to have been dashed. To understand why Rite Aid is once again filing for bankruptcy, it helps to understand why the company originally filed for bankruptcy in 2023—something Rite Aid has laid out in detail in documents it filed with the United States Bankruptcy Court in the District of New Jersey today. Rite Aid cited multiple factors that necessitated its 2023 bankruptcy filing, including: 'suboptimal lease portfolio' of underperforming stores elevated labor costs increased costs from 'shrink' (theft) lower credit limits more restrictive payment terms from vendors reduced demand for its non-medication 'front end' products 'The lack of such inventory,' Rite Aid said, 'gave rise to a vicious cycle: high-margin front-end sales declined due to insufficient inventory, and lagging sales depleted liquidity and caused vendors to tighten trade terms even further.' The company's 2023 bankruptcy was meant to help the struggling pharmacy chain address the financial issues caused by these problems. But that's not the way things have played out since, which has led to the company filing its second bankruptcy this week. Why is Rite Aid filing for bankruptcy again? In a court document, Rite Aid said that its 'post-emergence business plan was based on data-driven projections (and extensive discussions with vendors) that Rite Aid's front-end vendors would return to their less restrictive prepetition payment terms' as well as assurances from select capital providers that the company would be provided with the needed letter of credit facilities—all of which the company said 'was crucial to Rite Aid's recovery.'
