The July 2025 Chapter 11 filing reshuffles contracts, raises tariff-driven costs and opens fresh opportunities; learn how pineapple, tin-plate and logistics suppliers can safeguard cash flow with Factorglobe.
Del Monte cited a trifecta of problems: declining demand for shelf-stable foods, a debt load classified at USD 1–10 billion, and margin pressure after Washington doubled tariffs on imported steel and aluminium to 50 % on 4 June 2025.
Brands such as Contadina, S&W and Joyba will keep shipping, but CEO Greg Longstreet called Chapter 11 “the most effective way to accelerate our turnaround.”
Only U.S. entities entered bankruptcy; subsidiaries in the Philippines, Thailand and Mexico remain outside the case and continue to fulfil purchase orders.
The court has authorised Del Monte to tap USD 912.5 million of DIP financing—split between a term loan and an asset-based revolver—plus a USD 165 million seasonal facility reserved for fruit and vegetable purchases.
Inter-company purchase orders from Philippine and Thai plants continue, but any buyer of the U.S. business could pivot sourcing to Latin America or fresh-cut formats in 2026.
The 50 % tariff is estimated to raise canned-food production costs by 9–15 %, prompting packers to explore pouches or smaller SKUs—moves that would shrink demand for Japanese or Indonesian steel.
Carriers still haul loads under first-priority post-petition status, yet Uber Freight’s USD 9 million pre-petition exposure shows why many providers are tightening credit or switching to cash-on-delivery terms.
Factorglobe specialises in AI-driven export factoring for Singaporean and Southeast-Asian SMEs, advancing up to 90 % of approved invoices while monitoring buyer risk in real time. If your buyer's payment cycle lengthens or contracts shift to new owners, Factorglobe lets you keep shipping, pay growers and seize new orders without cash-flow stress.
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