Quantum Foods withdraws asset sale, bid procedures approval motion

By Caroline Salls

Pittsburgh, July 10 – Quantum Foods, LLC’s motion for approval of its asset sale and bid procedures was withdrawn on Wednesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The motion was filed on Feb. 18.

In April, Quantum Foods cancelled the auction for substantially all of its assets and said it would ask the court to approve the $55 million stalking horse bid from Raging Bull Acquisition Co., LLC.

However, Raging Bull filed a complaint in May accusing the company of breaching the asset purchase agreement by refusing to reimburse a required $5.4 million deposit.

On May 15, Quantum said it must hire a liquidation firm to sell substantially all of its assets in connection with an amendment to its debtor-in-possession financing.

The company said it defaulted on the DIP facility after Raging Bull decided not to buy substantially all of its assets. The default arose because the company failed to obtain a sale order by April 21 or close the sale by April 23.

Quantum Foods, an Illinois-based provider of cooked beef, poultry and pork for school, military and retail outlets, filed for bankruptcy Feb. 18 under Chapter 11 case number 14-10318.

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