Quantum Foods counterclaim alleges fraud
July 14, 2014
by Meat&Poultry Staff
Search for similar articles by keyword: [Legal
BOLINGBROOK, Ill. – Quantum Foods and Raging Bull Acquisition Company, LLC are embroiled in a legal fight over a business deal gone wrong.
In March, Raging Bull, a subsidiary of Oaktree Capital Management LP, agreed to buy Quantum Foods for $54 million. But a dispute between the two companies scuttled the deal.
Raging Bull accused Quantum of breaching the asset purchase agreement, among other charges, claiming that Quantum Foods supplied customers with substandard products and service. Raging Bull also said Edward Bleka, founder and owner of Quantum Foods, was trying to use confidential information to establish a competing business. Raging Bull wants regain a $5.4 million deposit the company made in its bid to acquire Quantum Foods. Quantum Foods had filed for Chapter 11 bankruptcy protection in February.
But Quantum denied the claims, alleging in court documents that Raging Bull was engaged in a "fraudulent scheme" to acquire Quantum for less than the agreed upon price of $54 million. Quantum wants the US Bankruptcy Court for the District of Delaware to dismiss all charges made against the company in addition to keeping the $5.4 million.
In June, West Liberty Foods LLC bought most of Quantum Foods' assets in a transaction valued at $12.7 million.