Case Study: Quantum Foods

Quantum provides processed and packaged beef, poultry, and pork to retailers, foodservice providers, restaurants, and institutional customers in the U.S. and abroad. The Company has a staff of more than 1,100 employees and gross revenue in excess of $500,000,000.

The Company filed for Chapter 11 bankruptcy protection and had procured a strategic buyer and stalking horse. During the diligence period the buyer claimed a material change and did not close the purchase. With limited liquidity the CRO was forced to cease production.

The CRO and the senior secured creditors turned to Tiger to run a dual process beginning a liquidation of the company while soliciting a new strategic buyer.

Tiger’s Role

Tiger prepared a bid package and contacted strategic and financial buyers Tiger knew to be large enough to make a purchase of this size but nimble enough to complete a transaction in an expedited time frame and with less than perfect information.

At the same time Tiger worked in conjunction with the CRO and staff to negotiate inventory sales to customers and opportunistic buyers. Tiger’s auction division began prepping for a piecemeal liquidation of equipment in the event we were not able to find a single turnkey buyer. Additionally the threat of liquidation with hard time lines help to pressure potential buyers.

Within four weeks Tiger received two all cash bids and signed purchase agreements for the Quantum assets. After further negotiations with each buyer Tiger and Quantum received court approval a week later. Moreover, Tiger separately negotiated the sale of leased equipment assets and two buildings resulting in proceeds of over $50,000,000 for various creditors.

Today

Quantum’s assets are now a productive and successful division of West Liberty Foods, LLC.