The strategy – known in industry parlance as a drop-down transaction – allows Del Monte to raise fresh liquidity by borrowing against the transferred assets. — Bloomberg
NEW YORK: Del Monte Foods Inc is overhauling its debt in a restructuring plan that leaves creditors that don’t participate at the bottom of the payout pecking order.
The canned fruit company plans to move its assets into a newly created legal entity, according to people familiar with the situation.
