Sunday, April 29, 2007
Pittsburgh Brewing Strikes Deal with Water Authority to Keep Brewing
It takes plenty of water to make beer. In the case of Pittsburgh Brewing, water is an even more important ingredient as the Pittsburgh Water & Sewer Authority (PWSA) remained the final hold out to approval of the brewery's Chapter 11 reorganization plan.
Late last week the brewery and the utility came to an agreement. The PWSA has said it was owed $2.6 million in unpaid water bills. Pittsburgh Brewing went into bankruptcy in December 2005 when the utility threatened to shut off service. The PWSA has agreed to accept $500,000 to settle its claim.
Pittsburgh Brewing Acquisition will also have to pay off a lien of $575,000 in claims accumulated after the Chapter 11 proceedings began. The company expects to receive some government funding to help keep Iron City and other brews flowing.