Mofo Advises Official Committee of Unsecured Creditors on Confirmation of Del Monte Foods’ Chapter 11 Plan

NEW YORK – Morrison Foerster (“MoFo”) advised the Official Committee of Unsecured Creditors (the “Committee”) in the Chapter 11 cases of Del Monte Foods Corporation II Inc. and its debtor affiliates (collectively, the “Debtors”) in connection with the successful confirmation of the Debtors’ liquidating Chapter 11 plan by the U.S. Bankruptcy Court for the District of New Jersey.

MoFo advised the Committee throughout the Chapter 11 proceedings, including in connection with the Debtors’ asset sale process, culminating in the sale of substantially all of the Debtors’ operating assets. MoFo also assisted the Committee in conducting an extensive investigation into the Debtors’ prepetition secured financing facilities, liability management transactions, and corporate governance decisions. The investigation identified multiple colorable estate claims that were settled as part of a comprehensive settlement among estate parties including the Committee.

The confirmed plan provides meaningful recoveries for unsecured creditors including an $8 million cash recovery for holders of general unsecured claims, funding for administrative, priority, and section 503(b)(9) claims, and the payment of post-petition trade obligations through an orderly wind-down.  As additional consideration for the settlement of estate claims identified by the Committee, all purchasers of the Debtors’ assets agreed to acquire and settle all avoidance action claims against the Debtors’ trade vendors. 

The MoFo team advising the Committee was led by Lorenzo Marinuzzi, Theresa A. Foudy, Raff Ferraioli, Oksana Lashko, and Darren Smolarski.