As of January 31 this year, the parent company's net investment value in Demont Foods was US$579 million (approximately S$749 million), and net receivables in Demont Foods and its subsidiaries reached US$169 million. The current market value of the parent company is approximately RMB 100 million. The parent company emphasized that Demont Foods’ bankruptcy filing is not expected to affect the group’s operations outside the United States. The parent company does not provide any loan guarantees for Demont Foods or its subsidiaries, nor assumes possible liabilities for related financial obligations. The company is currently finalizing the specific impairment amount and other significant impacts, and it is expected to announce the relevant details before July 31.
As of about 4 p.m., Demont's share price rose 26.79% to 0.071 yuan.
The SGX-listed company said on Monday (July 7) that equity investments in Demont Food and related accounts receivable are expected to face impairment.
According to Demont's 2024 fiscal year performance report, Demont Food's sales account for more than 70% of the group's overall sales. As the majority of the Demont Foods board seats have been replaced by creditors, the parent company no longer has control. The Group will remove Demont Food from its consolidated financial statements.
Philippine food company Del Monte Pacific expects that the impairment of assets caused by the bankruptcy filing of the US subsidiary Del Monte Foods will create a capital deficit on its balance sheet.