Arts Council England said it was doing "additional checks" on Manchester-based Primary Events Solutions' bid after receiving "new information".
The firm - which denied any wrongdoing - said it would "support and fully cooperate with the new checks".Earlier this week, the company's co-owner Sacha Lord - a night-time economy adviser to Greater Manchester Metro Mayor Andy Burnham - described the news site's claims as "defamatory and factually incorrect".
The Parklife and Warehouse Project co-founder is one of three owners of the firm, which was awarded £401,928 from the recovery fund that was administered by Arts Council England. In statement, Arts Council England said: "In light of new information that has been directly brought to our attention this week, we will be conducting additional checks on the application from Primary Event Solutions."
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