Pittsburgh Brewing Co., the maker of Iron City Beer, filed for protection from creditors under federal bankruptcy regulations Wednesday after failing to pay $2.5 million in water and sewage bills.
PITTSBURGH — Pittsburgh Brewing Co., the maker of Iron City Beer, filed for protection from creditors under federal bankruptcy regulations Wednesday after failing to pay $2.5 million in water and sewage bills.
Pittsburgh Brewing, which employs about 250 people, will continue to operate while under Chapter 11 protection, said company attorney Robert O. Lampl.
The company had defaulted on sewage treatment payments dating back to 1996 and had failed to pay current water and sewage bills -- charges totaling about $2.5 million, said Holly Parada, a spokeswoman for the Pittsburgh Water & Sewer Authority.
On Monday, the authority issued a notice threatening to cut off water service if the company's obligations weren't met by the end of the day Tuesday. The bankruptcy filing prevents the agency from terminating water service, Parada said.
The filing in federal court in Pittsburgh shows Pittsburgh Brewing has estimated assets of less than $10 million and debts of less than $10 million.
The company has struggled to survive in recent years amid a declining beer market and tougher competition. It took the unusual step of trying to win a government bailout of its pension plan before seeking bankruptcy, and was awaiting a federal agency's decision on the matter.
The company, which also makes I.C. Light beer, had agreed with the water authority to pay off the charges in installments. After meeting some of its obligations, the company eventually fell behind in its payments.
"It was a buildup of some past debt, and even though the place is paying as it goes, it can't take on all the past debt on demand," Lampl said.
The outstanding charges include about $2.3 million in unpaid sewage treatment bills from 1996 to 2004 and roughly $200,000 in water and sewage costs for this year, Parada said.
Source: Associated Press
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