Le-Nature's disclosure statement draws objection from Wachovia

By Caroline Salls

Pittsburgh, April 10 - Le-Nature's, Inc.'s disclosure statement for its plan of reorganization drew an objection Tuesday from Wachovia Bank, NA, according to a filing with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

According to the objection, the disclosure statement and plan "represent a blatant effort to wrest control of and use these cases as a forum in which to unfairly and improperly extract a return on the ad hoc committees' speculative investments."

Wachovia also said Le-Nature's informal secured lenders and subordinated noteholders committees want to begin free-ranging litigation against Wachovia at the expense of the estates.

In addition, Wachovia said the disclosure statement must not be approved because the plan is fatally flawed and incapable of confirmation, rendering approval of the disclosure statement futile, and because the disclosure statement does not contain enough information to allow an informed plan vote decision.

Wachovia also said the cumulative effect of the improper and discriminatory provisions of the plan, the failure to disclose information required to evaluate the plan and the plan proponents' attempts to take control of Le-Nature's Chapter 11 case reveals that the plan was not proposed in good faith.

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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