Le Nature Inc.

The sale of the bottling facility belonging to the bankrupt soft drink manufacturer Le Nature Inc to U.S. supermarket chain Giant Eagle has been put on hold, amid allegations of improper bidding. An auction was carried out and came to a climax on August 9, when it was announced that Giant Eagle's bid $20 million for the plant in Latrobe had beaten Cadbury Schweppes' $19 million offer. Giant Eagle disclosed the size of its offer more than a month earlier. But now allegations have surfaced that Giant Eagle had threatened to stop selling Cadbury Schweppes's products at its 350 supermarkets and convenience stores, if the soft drinks maker outbid it. These are being investigated by bankruptcy trustee R. Todd Neilsen. A court hearing will take place on August 30 to discuss his findings. Le Nature's founder Gregory Podlucky was ousted as president in October after the discovery of a major accountancy fraud and document destruction at the firm. The teas and bottled water maker then filed for bankruptcy and ceased operating in December 2006, with the loss of 240 jobs. It was later found by creditors to have debts and liabilities of some $820 million and reported revenues of $275 million for 2005 were in fact closer to $32 million.