Le-Nature's U.S. Trustee chooses R. Todd Neilson as Chapter 11 trustee candidate

By Caroline Salls

Pittsburgh, Jan. 8 - Le-Nature's, Inc.'s U.S. Trustee asked the court to approve her choice of R. Todd Neilson as Chapter 11 trustee for the company's case, according to a Monday filing with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

The court granted Beaudin's motion to appoint the Chapter 11 trustee on Dec. 20 to replace the custodian and responsible officer positions.

As previously reported, when Le-Nature's troubles erupted at the start of November, Kroll Zolfo Cooper was named as custodian by the Court of Chancery for the State of Delaware. Salvatore LoBiondo Jr. of Kroll Zolfo was appointed as responsible officer when an involuntary Chapter 7 filing was converted to a Chapter 11 proceeding on Nov. 3.

But Beaudin said there was no provision in the bankruptcy code to appoint a custodian.

In turn, Beaudin said either the company's management must continue as debtor in possession or a Chapter 11 trustee must be appointed.

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. The case was converted to Chapter 11 on Nov. 3. The case number is 06-25454.

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