Del Monte Pacific shares jump 28.6% after company responds to SGX queries on US unit’s bankruptcy
Sign up now: Get ST's newsletters delivered to your inbox
Del Monte Pacific said it has not guaranteed any loans for the US unit or its subsidiaries and has no contingent liability with respect to their financial obligations.
PHOTO: BLOOMBERG
Follow topic:
SINGAPORE - Singapore-listed canned food company Del Monte Pacific expects to record a capital deficit on its balance sheet from write-offs in relation to its US subsidiary Del Monte Foods (DMF), which last week filed for bankruptcy.
Del Monte Pacific’s equity investment in DMF and certain receivables due from the US subsidiary are expected to be subject to impairment, the group said on July 7 in a response to queries from Singapore Exchange about its ability to continue as a going concern.
As at Jan 31, Del Monte Pacific’s net investment value in DMF was US$579 million (S$740 million).
In a statement last week, it also said it had US$169 million in net receivables from DMF and its subsidiaries. The company has a current market capitalisation of about $100 million.
However, the company said that the developments are not expected to disrupt its operations beyond the US, even as the extent of the impairments and other material impacts are currently being finalised and will be disclosed by July 31, 2025.
According to Del Monte Pacific’s annual report for financial year 2024, DMF’s sales accounted for more than 70 per cent of the group’s sales.
Del Monte Pacific clarified that it has not guaranteed any loans for DMF or its subsidiaries and that it has no contingent liability with respect to their financial obligations.
It will be stripping the US subsidiary from its consolidated accounts as it no longer controls the US unit after debtors replace the majority of the latter’s board.
Shares of Del Monte Pacific jumped 28.6 per cent, or 1.6 cents, to close at 7.2 cents on July 7. THE BUSINESS TIMES
