E-Malt.com News article: USA: Judge puts off Pittsburgh Brewing hearing and extends deadline to October 15 2006

U.S. Bankruptcy Court Judge M. Bruce McCullough agreed August 29 to put off a hearing on rejecting a union contract that covers about 160 workers after Pittsburgh Brewing and the union told him progress has been made at two recent bargaining sessions, Pittsburgh Post-Gazette (KRT) Via Thomson Dialog NewsEdge unveiled August 30.

Judge McCullough also agreed to extend to October 15 the time the bankrupt Lawrenceville brewer has to file a reorganization plan. The brewery already had been given an extension since the original deadline of April 6.

Pittsburgh Brewing had been hoping to extend the deadline to Nov. 1, which would have given it two extra weeks to determine its own fate before creditors can file reorganization plans of their own. But August 29, it agreed to the earlier deadline proposed by its unsecured creditors who said they were working with the company on a plan to reorganize.

Attorneys for the company, the IUE/Communications Workers of American union and the unsecured creditors declined comment on negotiations on the plan.

Robert O. Lampl, Pittsburgh Brewing's attorney, told the court that meaningful progress was made during negotiations with the union and that two more sessions are scheduled for next week. "We need some more time," he told Judge McCullough.

The company had asked the judge to nullify a labor contract, ratified last year, so that it could impose its own contract terms to generate savings the company says it needs to survive. But the progress at the bargaining table led to the postponement of a hearing on that proposal for the third time.

Pittsburgh Brewing sought bankruptcy protection December 07 2005 after the Pittsburgh Water and Sewer Authority threatened to terminate service over unpaid bills.


31 August, 2006