Group hoping to revive beer maker

A company hoping to take over the brewery aims for union concessions.
PITTSBURGH (AP) -- Investors led by an equity fund manager will try to revive Pittsburgh Brewing Co., the bankrupt maker of Iron City and other beers, under a plan that would require more than 7 million of capital and scaled-back labor costs.
The group headed by John Milne of Greenwich, Conn.-based Unified Growth Partners LP is working with the brewery on a revised reorganization plan to be filed by Jan. 16.
The identity of the investor group was revealed at a hearing Thursday, when U.S. Bankruptcy Court Chief Judge M. Bruce McCullough approved a request by Pittsburgh Brewing for 500,000 in interim financing.
Creditors back down
Creditors including the Pittsburgh Water and Sewer Authority initially had objected to the financing, citing stipulations that would have given the lender precedence over their claims.
But they withdrew their objections Thursday, referring to recent bills paid by Pittsburgh Brewing, arrangements to pay debts, and talks with the investor group that assured them further financing was available.
"We've had some good negotiations with creditors," Milne said after the hearing. "Our goal is to reinvigorate an iconic brand that's nearly 150 years old."
To meet with unions
The capital required to bring the company out of Chapter 11 bankruptcy would exceed the amount required under Pittsburgh Brewing's initial reorganization plan filed in October, he said, declining to give a specific figure.
That plan, criticized by the judge as unworkable, called for an infusion of 7 million in debt and equity.
An attorney for the investors, Robert Albergotti, said the group had determined the amount it could contribute to make Pittsburgh Brewing viable and had discussed that figure with creditors.
Under the proposed plan, Milne would become the company's chief executive officer. It was unclear what role current President Joseph Piccirilli would play.
Milne said the company needed restructuring and revisions to a union contract that was "ages old" and designed for a larger operation. He said he planned to meet with union workers after Thursday's hearing.
Unions representing about 135 brewery workers unanimously rejected proposed pay and benefit concessions Oct. 1.