US - Struggling beef, pork and poultry product manufacturer Quantum Foods is to be acquired by Raging Bull Acquisition Company.
Quantum has received bankruptcy court approval for 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 Advance Pierre Foods, 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 23 April, 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 17 April, with court approval scheduled on 21 April and closing set for 23 April.
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 18 February 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 18 February bankruptcy filings.
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.
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