Quantum Foods, LLC Completing Sale Process to Ensure Future Stability
Company Initiates Voluntary Chapter 11 Protection to Facilitate Orderly
$60 Million DIP Financing Commitment Ensures Operations Continue as Usual
BOLINGBROOK, Ill. -- February 18, 2014
Quantum Foods, LLC, a leading independent custom provider of value-added
proteins, today announced that it is in the final stages of negotiating a sale
of substantially all its business to CTI Foods Holding Co., LLC (CTI Foods).
After evaluating multiple opportunities in the process, a leader emerged with
a clear strategy to move Quantum Foods past its financial challenges and onto
a path for future success. CTI Foods, with seven existing manufacturing
facilities in the United States, would provide a strong infrastructure for
Quantum going forward.
“As an industry leading protein processor, Quantum’s well-established and
long-standing customer relationships, diverse product offerings and
demonstrated focus on quality and safety are recognized as significant value
to buyers,” said Edward B. Bleka, Chief Executive Officer, Founder and sole
owner of Quantum Foods.
“With enhanced financial backing, Quantum expects to fully deliver on its
historic commitment to fulfilling the needs of our customers efficiently,
safely and always with superior quality and service. We believe the completion
of the sale process will enable us to focus effectively on caring for our
customers, vendor partners and employees, who have all been incredibly
supportive to the company,” Bleka added.
To facilitate the expected sale transaction, Quantum Foods has determined it
is best to execute this sales process under the protection of the United
States Bankruptcy Code. Quantum Foods today filed a voluntary Chapter 11
petition in the District of Delaware to obtain the essential financing
necessary to preserve continuity, to the greatest extent possible, for its
customers, employees and business partners. To this end, the company has
secured a commitment for $60 million in debtor-in-possession (DIP) financing
from its current lending group led by Crystal Financial LLC to fund its
ongoing operations and fully expects to operate its overall business as usual
by continuing to provide customers with safe and high quality protein products
throughout this process.
In conjunction with the filing, Quantum Foods filed First-Day Motions with the
Court to ensure the timely payment of employee wages and benefits, maintain
its customers’ promotional programs and complete a smooth transition into
operating under the protections of Chapter 11. The company expects to continue
purchasing goods and services from its suppliers and to pay suppliers in the
normal course for all goods and services delivered on or after today’s
filings, while claims for goods and services delivered prior to the filings
will be addressed as a part of the Chapter 11 process.
As part of the planned sale process through Chapter 11, the company will
solicit additional competing offers for Quantum Foods to ensure it achieves
the highest and best offer for its business.
Quantum Foods is being advised in its restructuring by Winston & Strawn, City
Capital Advisors, LLC and FTI Consulting, Inc. Information about the Company’s
Chapter 11 case can be accessed at www.bmcgroup.com/restructuring.
About Quantum Foods
Quantum Foods, LLC is a leading independent custom manufacturer and processor
of innovative value-added protein products. Founded in 1990 and headquartered
in Bolingbrook, Illinois, Quantum provides its customers with menu solutions,
including portion controlled, ready-to-cook and value-added fully cooked
protein products made from beef, poultry and pork. The Company has established
a long-standing, blue-chip customer base in the foodservice, retail,
industrial, school and military channels. Quantum Foods’ state-of-the art
manufacturing facilities, coupled with its impeccable food safety program and
world class customer service, have contributed to the Company’s long-term
growth and relationships with its customers in the United States and abroad.
Learn more information about menu solutions and Quantum Foods at
KGT Communications Group, Inc.
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