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The Philippine Stock Exchange (PSE) has lifted the suspension on the trading of the shares of Del Monte Pacific Ltd. (DMPL) after accepting the firm’s explanation that Ernst & Young’s audit disclaimer concerns only its discontinued US business, which will not impact its continuing operations in Asia.
In a notice, the PSE said that, “In due consideration of the existing circumstances, the exchange grants DELM’s request to lift the continued trading suspension of its shares.”
The trading of DMPL shares resumed at 10:30 a.m. on Monday, Sept. 22, 2025.
In its clarification to the PSE, DMPL stressed that, “The audit disclaimer pertains only to the carrying values of assets and liabilities of, and the company’s investment in, and share in net losses of, its United States (US) subsidiary, Del Monte Foods Holdings Ltd. (DMFHL).”
“Since exposures to the US operations have been fully impaired and segregated, any further developments in the Chapter 11 proceedings are not expected to materially impact the company’s consolidated financial statements going forward.
“Moreover, management confirms that to the best of their knowledge and based on information available to them as of this date, there are no threatened or pending claims against the company itself in connection with the Chapter 11 proceedings,” said DMPL.
It noted that, “Management is not aware of any guarantees, much less any material direct obligations, undertaken by the company, in favor of DMFHL or its subsidiaries.”
DMFHL has been classified as “assets held for disposal” and presented as “discontinued operations” by DMPL, but Ernst & Young issued the disclaimer because its auditors were unable to obtain sufficient appropriate evidence on the recoverable values of these assets and related liabilities in view of the ongoing Chapter 11 proceedings in the US.
DMPL explained that the disclaimer does not constitute a violation of the Securities Regulation Code (SRC) since it did not arise from any deviation from accepted accounting standards (IFRS/PFRS) or the required financial reporting framework.
“Instead, the disclaimer stemmed from external circumstances related to the Chapter 11 process, which was very much outside the company’s control,” it added.
DMPL noted that its US business had been deconsolidated, and its results presented as discontinued operations; this ensures that uncertainties in the US operations do not affect the company’s continuing core businesses.
The firm said it has recognized full impairments on its residual interests in the US operations, and this conservative accounting approach ensures that no material overstatement of assets remains and that investors are not trading on inflated values.
“For clarity, such impairment is without prejudice to any claims or recoveries that the company may pursue or obtain in the Chapter 11 proceedings,” DMPL said.
The firm said its Philippine and Asian businesses, which constitute its continuing operations, remain fully audited without qualification and the disclaimer has minimal bearing, if any, on the integrity of these results.
