Del Monte Foods Corporation II Inc. v. Ad Hoc Group of Minority Secured Lenders

Fri, 24 Apr 2026 02:00:00 +0000
Bankruptcy

The US Bankruptcy Court for the District of New Jersey denied a motion by the Ad Hoc Group of Minority Secured Lenders seeking certification of direct appeal to the Third Circuit Court of Appeals regarding the court's Settlement Approval Order. The settlement, approved following a two-day evidentiary hearing, provided an $8 million recovery to general unsecured creditors. The movants argued the settlement violated core Bankruptcy Code provisions governing creditor treatment under 11 U.S.C. §§ 1129(b)(1) and 1123(a)(4). The court rejected arguments that the settlement raises pure questions of law suitable for immediate appellate review, finding instead that the issues involve application of established legal standards to a detailed factual record.