Oaktree Capital’s subsidiary Raging Bull to buy Quantum Foods
Raging Bull, a subsidiary of Oaktree Capital Management, will acquire Quantum Foods, a US-based prot…Raging Bull, a subsidiary of Oaktree Capital Management, will acquire Quantum Foods, a US-based proteins products maker, for $54m.
The move comes after a bankruptcy court approval, which led to at least $6.5m increase in the value for the business over previous stalking horse terms.
Scheduled to close on 23 April 2014, the transaction includes the assumption of up to $30.3m in liabilities.
Quantum Foods said it is still seeking competing offers, to ensure that it achieves the highest and best offer.
An auction will be held on 17 April, with court approval expected to come on 21 April.
The company's lending group led by Crystal Financial has committed to provide $60m in debtor-in-possession (DIP) financing.
Quantum Foods plans to use the proceeds to fund its ongoing operations, including purchase of goods and services from suppliers and to pay suppliers.
On 18 February, the company filed for bankruptcy protection in the District of Delaware, to secure financing for continuing its operations.
Quantum Foods produces protein products, including portion-controlled, ready-to-cook and value-added fully cooked foods made from beef, poultry and pork. It caters to foodservice, retail, industrial, school and military channels.
