Quantum Foods committee obtains approval of Cargill claim settlement

By Caroline Salls

Pittsburgh, April 7 – Quantum Foods, LLC’s official committee of unsecured creditors received court approval of a settlement with Cargill Inc and Cargill Meat Solutions Corp. resolving a claim of $2.15 million, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

In October 2014, the committee filed an adversary complaint against Cargill demanding the company return allegedly preferential transfers totaling $2.15 million related to payments for shipped products.

As the payments were made in the three-month period before Quantum filed for bankruptcy, the committee claimed that Cargill was paid when the company was already insolvent.

Under the settlement agreement, Cargill will pay the Quantum estate a total of $125,000 in exchange for the full release of any claims against it.

The committee said that the settlement is in the best interest of the estate as Cargill has “asserted certain defenses” against the full repayment of the transfers, which could “reduce or eliminate” its liability, according to the motion.

Quantum Foods, an Illinois-based provider of cooked beef, poultry and pork for school, military and retail outlets, filed for bankruptcy on Feb. 18, 2014 under Chapter 11 case number 14-10318.

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