USA: Pittsburgh Brewing to propose a plan to exit bankruptcy
Pittsburgh Brewing intends to propose a plan Tuesday for ending its 14-month bout of bankruptcy, but it may be incomplete and some creditors may not be happy with what's in it for them, a lawyer for the proposed buyer said, according to Pittsburgh Post-Gazette, February 23.
The deadline for filing the plan has been delayed twice in the hope that the proposed buyer, an investment group led by John N. Milne of Unified Growth Partners, will be able to negotiate a reorganization plan that would satisfy the Lawrenceville brewer's legion of creditors. Yesterday, Joel Walker, Mr. Milne's attorney, told U.S. Chief Bankruptcy Court Judge M. Bruce McCullough the plan may not be consensual.
"We have nailed down a few key components," said Mr. Walker.
Among those who may not be happy with their treatment is the Pittsburgh Water and Sewer Authority, whose threat to terminate service over more than $2 million in unpaid bills triggered the bankruptcy. Wholesalers who distribute the brewery's Iron City and IC Light products also may have objections, according to several industry officials who asked not to be identified.
Another small piece of the complicated puzzle fell into place yesterday when Mr. Milne's group agreed to contribute $500,000 to an underfunded pension plan for the brewery's union workers. Workers represented by the IUE/Communications Workers of America are the only major creditor to publicly come to terms with the proposed buyer, ratifying a new labor agreement that reduces their pay 15 percent and requires other concessions.
Under the terms of a tentative deal negotiated hours before yesterday's hearing, Mr. Milne's group would contribute $250,000 in cash to the union pension fund if it completes the purchase of the brewery's assets. The other half would be financed with a five-year secured loan.
The union took the brewery to court over more than $335,000 in required contributions the company has failed to make to the plan since it filed for bankruptcy protection in December 2005. It was seeking immediate payment of nearly $467,000 in contributions, interest and damages.
The underfunded pension plan would be discontinued if Mr. Milne's group succeeds. Any additional claims the union has with Pittsburgh Brewing over the fund will have to be worked out as part of the reorganization plan, said James D. Newell, the union's attorney.
Wstecz
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