What might happen to the bankrupt maker of Iron City beer is likely to be determined in the next three weeks. Lawyers for Pittsburgh Brewing Acquisition LLC say they need that long to conclude negotiations with the brewery's creditors.
Pittsburgh Brewing went into bankruptcy in December 2005. Multiple extensions have been granted by the U.S. Bankruptcy Court in Pittsburgh since that time and the company has failed to make some promised payments to creditors. The acquisition group, led by John Milne of Connecticut, emerged late last year and has been negotiating deals with a number of creditors and got unionized brewery workers to make concessions.
Attorneys for Milne's group told the Bankruptcy Court that it was still an open question as to whether they could successfully conclude the negotiations. If the deal making works out the group would present a formal reorganization plan on Feb. 27 and then creditors would have 60 days to approve the plan.
Pittsburgh Brewing Acquisition is said to be ready to invest $7 million in the operation. It has also sought help from the Commonwealth of Pennsylvania in the form of loans and grants.
1 comment:
I'll be keeping my fingers crossed. Pitt Brewing is a great institution and I'd hate to see it go down for the count.
Post a Comment