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Thursday, March 01, 2007

Pittsburgh Brewing Files Reorganization Plan

After a number of delays, Pittsburgh Brewing Co. has filed a reorganization plan that may allow the maker of Iron City Beer to emerge from bankruptcy. The plan calls for the company to be acquired by Pittsburgh Brewing Acquisition and pay $3.98 million to creditors, erasing millions in other debts.

The brewery must win approval for the plan from the creditor group by April 27th. At least one half of the creditor group, holding at least two thirds of the debt must vote in favor of the plan.

The investment group acquiring the company is headed by John N. Milne of Westport, Conn. Milne will become chief executive officer at the brewery, while fellow investor Timothy Hickman of East Liverpool, Ohio, will become the company's president.

The plan calls for creditors to receive quarterly payments spread across five years. Left out in the cold are most of the estimated 75 shareholders of the current company, who will not receive any payments for their stock.

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