Updated Jul. 2 @ 12:30 pm
Uber Freight, listed as an unsecured creditor of Del Monte in its filing, responded to the news with a statement from a company representative.
“Del Monte has been a valued customer of Uber Freight for many years. We are proud to serve a critical role to Del Monte’s business and remain committed to supporting them through this court-supervised restructuring process. While the filing includes pre-petition balances, we’re confident those obligations will be addressed appropriately through the bankruptcy process. As a critical vendor of Del Monte, we are confident we will receive full payment for services rendered, and we remain focused on delivering uninterrupted support as a trusted, long-term logistics partner.”
Original Story:
Del Monte Foods Corporation has filed for Chapter 11 bankruptcy, listing more than $1 billion in liabilities and over 10,000 creditors. The case, filed in the U.S. District of New Jersey, ranks among the largest food shipper bankruptcies in recent years, given the company’s national footprint and brand portfolio.
A Legacy Brand with National Reach
Del Monte Foods reported $1.7 billion in U.S. revenue for fiscal year 2024. Its brand portfolio includes household names such as Del Monte canned fruits and vegetables, Contadina tomato products, College Inn broths, Joyba bubble tea, Kitchen Basics stocks, and S&W beans. These products are sold nationally through grocery, mass retail, and club channels.
Freight, Warehousing, and Pallet Vendors Owed Millions
Uber Freight (listed as Transplace, a company that Uber Freight acquired, in the filing) was listed as the second-largest unsecured creditor, owed over $9 million for managed transportation and freight brokerage services. Saddle Creek Logistics is owed $1.3 million for warehousing support, while CHEP USA has $470,000 in exposure tied to pooled pallet services.
Under Chapter 11, these pre-bankruptcy amounts are classified as unsecured claims, placing them behind secured lenders and administrative expenses in repayment priority. There is no guarantee of full recovery, and outcomes typically depend on asset sales or court-approved reorganization plans.
Possibility for Payment on Post-Filing Services
While pre-petition balances remain at risk, logistics providers may be able to negotiate repayment for services rendered after the filing. These post-petition services—such as transportation, warehousing, or pallet pooling—may be granted administrative expense priority if approved by the court and funded under Del Monte’s debtor-in-possession (DIP) budget.
DIP Financing Secured, Asset Sales on the Table
Del Monte has secured $912.5 million in DIP financing, split between a term loan and an asset-based lending facility. The financing is led by Wilmington Savings Fund Society and JPMorgan Chase Bank.
The company’s board has authorized the potential sale of “all or substantially all” of its assets, indicating that major brands or business units could be sold as part of the reorganization. Logistics contracts may be assumed, renegotiated, or terminated depending on how buyers choose to operate.
Logistics Providers in a Transitional Position
In Chapter 11 cases, transportation and warehousing vendors often continue playing a vital operational role while navigating uncertainty over unpaid balances. Post-filing services can be paid on a priority basis, but terms are typically subject to court oversight and tighter credit conditions.
