BOLINGBROOK, Ill. – A creditor of Quantum Foods is seeking to take immediate possession of equipment that serves as collateral, according to news reports.
Quantum Foods told most of its workers to stay home after a deal to sell the company fell through. In March, Raging Bull Acquisition Company LLC, a subsidiary of Oaktree Capital Management LP, agreed to buy Quantum Foods for $54 million.
Quantum Foods filed for Chapter 11 bankruptcy protection in February due to declining demand for its military products. A bankruptcy court approved an asset purchase agreement. The company said it owes more than $50 million to a secured creditor and more than $7 million to unsecured creditors.
Quantum Foods produces value-added protein products such as portion-controlled, ready-to-cook and value-added fully cooked foods made from beef, poultry and pork.