Freeborn & Peters Retained as Special Litigation Counsel to the Official Committee of Unsecured Creditors in the Quantum Foods, LLC Case

The Bankruptcy and Financial Restructuring Practice Group of Freeborn & Peters has been retained as Special Litigation Counsel to the Official Committee of Unsecured Creditors of Quantum Foods, LLC (“Quantum”) in the District of Delaware.  Freeborn was retained to investigate, prosecute and otherwise resolve various causes of action in Quantum’s chapter 11 bankruptcy case which was filed in February, 2014.  Partners Richard Lauter and Devon Eggert and associate Elizabeth Janczak will be handling the engagement.

Specifically, Freeborn will be charged with investigating, and where appropriate, prosecuting actions seeking the avoidance and recovery of nearly $75 million in payments made by Quantum to its creditors in the 90 days prior to Quantum’s bankruptcy filing, as well as investigating and prosecuting commercial tort claims on behalf of the estates.  The Committee notes that Freeborn’s efforts may yield “substantial recoveries” for creditors.

Quantum Foods, located in Bolingbrook, IL was one of the world’s leading suppliers of protein products and custom menu solutions.  In June Quantum sold a substantial portion of its business assets to West Liberty Foods (“West Liberty”), of West Liberty, Iowa.   West Liberty bought Quantum’s assets for $12 million after a $54 million stalking horse deal to Oaktree Capital Management LP unit Raging Bull Acquisition Co. LLC collapsed in May. 

West Liberty is a co-packer, private-label manufacturer, and food service supplier of sliced deli meats and fully cooked individually quick frozen products.  West Liberty expects to reopen Quantum’s Bolingbrook plant, commencing meat processing operations and bringing back hundreds of jobs which were lost when the plant was closed. 

For more information about Quantum Foods or West Liberty Foods, visit their websites. Freeborn’s retention was also recently discussed in the red meat and poultry processing industry blog meatingplace.com. (subscription required).