According to Reuters on the 2nd, Delmont Foods recently filed for bankruptcy protection under Chapter 11 of the Federal Bankruptcy Act with the New Jersey Bankruptcy Court following an agreement with some major creditors.
Delmont Foods said it is also pursuing a plan to sell the company through bankruptcy proceedings. “After reviewing various options, we decided that the sale process under court supervision is the most effective way to speed recovery and create a stronger and more sustainable company,” the company said.
Delmont Foods owns canned goods, canned fruits and vegetables brand Delmont, as well as tea brand Joyba. According to court filings, assets and liabilities are estimated to be between $1 billion and $10 billion, respectively, and the number of creditors ranges from 10,000 to up to 25,000.
The company said it will continue operations during the bankruptcy process and has secured $912.5 million in operating funds for that purpose.
The bankruptcy filing only applies to businesses in the United States, and some overseas subsidiaries are not included in the process and operate as usual, the company added.
SAM KIM
US ASIA JOURNAL
