Quantum Foods OK to enter settlement tied to $5.4 million sale deposit

By Caroline Salls

Pittsburgh, Sept. 25 – Quantum Foods, LLC received court approval of a confidential settlement agreement reached with Raging Bull Acquisition Co. LLC and Oaktree Capital Management, LP in connection with Quantum’s failed asset sale, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Raging Bull paid the Quantum Foods debtors a $5.4 million deposit in connection with its stalking horse bid agreement, which Quantum currently holds.

Raging Bull subsequently decided not to purchase the company’s operating assets.

Quantum said Raging Bull filed a lawsuit asking the court to order Quantum to return the deposit. Quantum filed counterclaims against Raging Bull and Oaktree in July, alleging fraud, breach of the implied covenant of good faith and fair dealing, breach of contract and aiding and abetting.

Although the terms of the settlement were not disclosed, Quantum said in a motion that it will be able to keep a portion of the deposit.

Quantum Foods, a Bolingbrook, Ill.-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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