Pittsburgh Brewing Gets New Owners, New NamePOSTED: 9:55 am EDT June 6,
2007 PITTSBURGH -- Pittsburgh Brewing Co. got court approval Tuesday to emerge from bankruptcy protection with new ownership, and the name it started with nearly 150 years ago: Iron City Brewing Co.The company -- which makes Iron City, I.C. Light and Augustiner beers -- sought protection in 2005, after the Pittsburgh Water and Sewer Authority threatened to cut off its water supply because of $2.5 million in unpaid bills.The brewery disputed the charges, but agreed to settle its debt with the authority by paying at least $575,000.The reorganization plan calls for paying the company's creditors about $5 million on debt of more than $26 million.The brewery's new owners -- an investment group led by private equity fund manager John Milne -- will take over on July 7.They said $4.1 million will be spent to upgrade the company's plant in Lawrenceville, and a new marketing effort will be started."Pittsburgh Brewing was in bankruptcy for two main reasons: a weak balance sheet and an excessive cost structure. The reorganization plan addresses those issues and positions it well for future growth," said Tim Hickman, who will take over as the new president of Iron City Brewing. Related Links: More Allegheny County NewsRSS Headlines | Breaking News Alerts Copyright 2007 by ThePittsburghChannel. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report. |
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