The Pittsburgh Brewing Company reached an agreement to resolve the debt with the Pittsburgh Water and Sewer Authority (PWSA) that will allow the historic Pittsburgh landmark to open for business and create a more solid financial foundation for the future operation under new management. The Mayor Ravenstahl led compromise ensured a fair deal for PWSA rate payers, improving the bleak circumstances surrounding Pittsburgh Brewing’s looming debt.
“The last piece of the puzzle was negotiating a fair pay arrangement for PWSA, while at the same time allowing the brewing company to operate so that it could pay its bills,” said Mayor Ravenstahl. “We’ve built a bridge across the past debt divide, giving the new brewery management the ability to continue to pay future costs and run a viable operation.”
The compromise follows two weeks of negotiating a settlement with PWSA after U.S. Bankruptcy Court Chief Judge M. Bruce McCullough gave creditors more time to reach an agreement. The Pittsburgh Brewing Company’s plan, led by businessman John N. Milne, reached today, calls for paying the authority $500,000 - $200,000 now and $100,000 over the next three years. In addition, the City will retain a lien against the property that will be replaced over time by an interest in $4 million worth of capital asset investments planned to keep the brewery competitive and operating.
The Ravenstahl administration replaces a previous plan filed in February which would have paid the authority $250,000, less than 10 cents on the dollar based on the authority’s $2.7 million.
The new settlement plan includes low interest business development loans and a grant from the Commonwealth of Pennsylvania. Pittsburgh Brewing Company employs 100 management and rank and file employees and contributes $30 million a year to the Pittsburgh economy.
Thursday, April 26, 2007
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Office of Mayor Luke Ravenstahl
512 City County Building | 414 Grant Street
Pittsburgh, PA 15219
telephone: 412-255-2626 | facsimile: 412-255-2687