Le-Nature's granted court approval for $20 million sale of Latrobe facility to Giant Eagle

By Jennifer Lanning Drey

Portland, Ore., Aug. 9 - Le-Nature's Inc. obtained court approval to sell its Latrobe, Pa., facility to Giant Eagle, Inc. for $20 million, according to a source familiar with the company's Chapter 11 proceedings.

Giant Eagle won the right to purchase the facility during a Thursday auction, and the U.S Bankruptcy Court for the Western District of Pennsylvania later approved the sale.

As previously reported, Giant Eagle submitted an $18.9 million bid for the facility in June and was named the stalking horse bidder. However, the bid procedures filed in connection with the stalking horse bid were later withdrawn.

On Aug. 8, Le-Nature's received a $19 million competing bid from Cadbury Schweppes Bottling Group, Inc., but the company was not willing to increase its bid during the auction, according to the source.

Le-Nature's, a Latrobe, Pa., manufacturer of flavored bottled water and other beverages, had an involuntary Chapter 7 bankruptcy case filed against it on Nov. 1, 2006. The case was converted to Chapter 11 on Nov. 3, 2006. The case number is 06-25454.

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