Quantum Foods, an independent custom provider of value-added proteins, announced that it has received bankruptcy court approval of its entry into a fully-executed asset purchase agreement with Raging Bull Acquisition Company. 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.

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 to fund its ongoing operations.

Quantum Foods filed a voluntary Chapter 11 petition in the District of Delaware on February 18, 2014 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 February 18, 2014 bankruptcy filings.

Raging Bull, a subsidiary of funds managed by Oaktree Capital Management, whose portfolio of companies also includes AdvancePierre 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 April 23, 2014.

Quantum Foods is being advised in its restructuring by Winston & Strawn, City Capital Advisors, LLC and FTI Consulting, Inc.

Previously on abfjournal: Crystal Financial Agents $80MM Facility for Quantum Foods, February 7, 2013