Del Monte Foods Corp. has initiated Chapter 11 bankruptcy proceedings and is pursuing a sale of the company.

The U.S.-based packaged food company, known for its canned fruits and vegetables, is a subsidiary of Singapore-based Del Monte Pacific Limited. It is not affiliated with Coral Gables, Florida-based Fresh Del Monte Produce Inc.

The company has reached a restructuring support agreement with a group of lenders who hold part of its term loan debt. Under this agreement, Del Monte Foods will pursue a sale of most or all of its assets as a going concern, with backing from those lenders, aiming to secure the best possible offer to maximize value for all stakeholders.

"This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success," said Greg Longstreet, President and CEO of Del Monte Foods.

To support the sale process and keep operations running, the company has secured $912.5 million in debtor-in-possession financing from some of its current lenders, including $165 million in new funding. The financing, which is subject to court approval, combined with cash flow from operations, is expected to provide enough liquidity to maintain normal business activities during the process — including the ongoing pack season.

Longstreet continued, "While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals."

The voluntary petitions were filed in the U.S. Bankruptcy Court for the District of New Jersey. Operations are expected to continue during the process.