Quantum Foods, LLC, Bolingbrook, Ill., received bankruptcy court approval of its entry into a fully-executed asset purchase agreement with Raging Bull Acquisition Company LLC. 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.

Raging Bull, a subsidiary of funds managed by Oaktree Capital Management L.P., whose portfolio of companies also includes AdvancePierre Foods, Inc., agreed to a cash purchase price of $54 million and the assumption of up to $30.3 million in liabilities.

As part of the planned sale process through chapter 11, the company will continue to solicit additional competing offers for Quantum Foods to ensure it achieves the highest and best offer for its business. The auction will take place on April 17, with court approval scheduled on April 21 and closing set for April 23.

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 LLC to fund its ongoing operations.

Quantum Foods filed a voluntary chapter 11 petition in the District of Delaware on Feb. 18 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 will pay suppliers in the normal course for all goods and services delivered on or after the Feb. 18 bankruptcy filings.