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Friday, December 22, 2006

Judge Gives Pittsburgh Brewing Time to Reorganize

U.S. Bankruptcy Court Chief Judge M. Bruce McCullough is not ready to declare last call for the Pittsburgh Brewing Co. At a hearing yesterday the financially challenged brewer of Iron City beer revealed that Unified Growth Partners(UGP)of Greenwich, Conn. was prepared to make an investment of more than $7 million in the brewery.

Judge McCullough approved $500,000 in interim financial from UGP and gave the brewery until Jan. 16th to file its reorganization plan. That plan is expected to include information on how the company will cut labor and other costs, while boosting marketing for its brands.

Creditors had been protesting the brewery's lack of a plan and financing scheme, but withdrew their objections because of recent payments and negotiations with the brewery and UGP representative John Milne, who will become Pittsburgh Brewing's chief executive officer if the plan moves forward.

Pittsburgh Brewing has been in and out of bankruptcy in the past. One of the moves the organization under Milne is said to be considering is the launch of a craft beer line up.

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