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The US Securities and Exchange Commission (SEC) has issued subpoenas to the Penn Traffic Co. as part of an investigation into the company’s promotional allowance policies.

The company said it is cooperating with the probe, and has place an unnamed employee on administrative leave pending completion of the investigation. Penn Traffic also reportedly has launched an internal investigation.

The timing is not good for Penn Traffic, which only recently emerged from almost two years of bankruptcy protection. The company said that the SEC probe will force it to delay “the finalization and release of its audited financial statements for its 2003, 2004 and 2005 fiscal years.”
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