Chapter 11 Del Monte Foods All Division Files for Bankruptcy
July 2nd at 12:30pm
Filed as Del Monte’s unsecured creditor, Uber Freight responded to the news in a statement from a company representative.
“DelMonte has been a valuable customer of Uber’s freight for many years. We are proud to be able to play an important role in DelMonte’s business and to maintain support through this court-approved restructuring process. The submission includes advance balances, but we are confident that these obligations will be addressed appropriately through the bank’s boring process. We will provide uninterrupted support as a reliable, long-term logistics partner.”
Original Story:
Del Monte Foods Corporation filed for Chapter 11 bankruptcy, listing more than $1 billion in debt and more than 10,000 creditors. The case, filed in the US District of New Jersey, ranks one of the biggest food shipper bankruptcies in recent years, given the company’s national footprint and brand portfolio.
Del Monte Foods reported US revenue of $1.7 billion for 2024. Its brand portfolio includes common names such as Del Monte canned fruits and vegetables, contadina tomato products, college-in soup, Joy Babuble Tea, kitchen basic inventory, and S&W beans. These products are sold nationwide through groceries, large retail and club channels.
Uber’s freight (listed as Transplace, the company that Uber freight acquired in filing) was listed as the second largest unsecured creditor owing more than $9 million for managed transport and freight brokerage services. Saddle Creek Logistics owes $1.3 million for warehouse support, but the exposure associated with Chep USA’s pooled pallet service is $470,000.
In Chapter 11, these pre-bankruptcy amounts are classified as unsecured claims and are prioritized for repayment after secured lenders and administrative costs. There is no guarantee of a full recovery and the outcome usually depends on asset sales or court-approved reorganization plans.
Although advance balances continue to be risky, logistics providers may be able to negotiate repayment of services provided after submission. These post-facto services, such as transportation, warehouses, or pallet pooling, may be prioritized for administrative expenses when approved by the court and provided under the Debtors (DIP) budget of Delmonte.