Quantum Foods wins OK of loan, entry into $54 million sale agreement

By Kali Hays

New York, March 20 - Quantum Foods, LLC obtained court approval of its entry into a $54 million asset purchase agreement with Raging Bull Acquisition Co. LLC, according to a Wednesday news release from the company.

As part of the agreement, Raging Bull will also assume up to $30.3 million of Quantum's liabilities.

Quantum Foods said the approved agreement provides for a substantial increase in the value paid for the business of at least $6.5 million over the previous stalking horse terms.

The company will "continue to solicit additional competing offers to ensure it achieves the highest and best offer for its business," the release stated.

If more than one qualified bid is received, an auction is set to take place April 17, with a sale hearing set for April 21. The sale is scheduled to close on April 23.

Quantum said a commitment from its current lending group led by Crystal Financial LLC for $60 million of debtor-in-possession financing was also approved.

"With DIP financing approval, the company will continue purchasing goods and services from its supplier and to pay suppliers in the normal course for all goods and services delivered on or after Feb. 18," the release stated.

Quantum Foods, an Illinois-based provider of cooked beef, poultry and pork for school, military and retail outlets, filed for bankruptcy Feb. 18 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 14-10318.

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