Quantum Foods, LLC Receives Enhanced Sale Agreement Approval
Schedule Finalized for Auction and Sale
BOLINGBROOK, Ill. -- March 19, 2014
Quantum Foods, LLC, a leading independent custom provider of value-added
proteins, today announced that it has received bankruptcy court approval of
its entry into a fully-executed Asset Purchase Agreement with Raging Bull
Acquisition Company LLC. 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.
Raging Bull, a subsidiary of funds managed by Oaktree Capital Management L.P.,
whose portfolio of companies also includes AdvancePierre Foods, Inc., agreed
to a cash purchase price of $54 million and the assumption of up to $30.3
million in liabilities. Closing of the sale is scheduled for April 23, 2014.
As part of the planned sale process through Chapter 11, the company will
continue to solicit additional competing offers for Quantum Foods to ensure it
achieves the highest and best offer for its business. The auction will take
place on April 17, 2014, with court approval scheduled on April 21, 2014 and
closing set for April 23, 2014.
In addition, a secured commitment for $60 million in debtor-in-possession
(DIP) financing was approved from its current lending group led by Crystal
Financial LLC to fund its ongoing operations.
Quantum Foods filed a voluntary Chapter 11 petition in the District of
Delaware on February 18, 2014 to obtain the essential financing necessary to
preserve continuity, to the greatest extent possible, for its customers,
employees and business partners.
With DIP financing approval, the company will 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 the February 18, 2014 bankruptcy
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.
Kenneth Trantowski, 630/469-8765
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