No it wasn't. It was Nicola Smith (sister of Mandy) who was engaged to Teddy Sheringham at the time. It was supposed to be due to the fact KP had sold a story about spending the night with Teddy a few years earlier to the press which later turned out to be false.
VB has said she was there and did laugh but then so did several other people who heard it so why single out VB for something she didn't do?
I'm only going on what I'd read .. And I did write allegedly ..