E-Malt.com News article: USA: Workers union to hire own accountant to review bankrupt Pittsburgh Brewing books

Bankrupt Pittsburgh Brewing and the union representing its workers struck a compromise July 18, averting a court showdown on the union's request for a court-appointed auditor, Pittsburgh Post-Gazette posted July 19.

The IUE-CWA, the industrial arm of the Communications Workers of America, agreed to hire its own accountant to review the brewery's books.

Last month, the union asked U.S. Bankruptcy Court Judge M. Bruce McCullough to appoint an outside auditor, arguing the brewery was not providing enough detailed financial information for potential investors. Under the terms of the agreement with the company, the union will share the accountant's findings with the company and other creditors.

"For now, it satisfies our concerns," said Michael Healey, the IUE-CWA's attorney.

Mr. Healey said there is no timetable for completing the review.

Pittsburgh Brewing's financial statements have not been audited for a number of years. When it sought permission from the Pension Benefit Guaranty Corp. to terminate its pension plan, the company said it couldn't afford the $65,000 an auditor would cost.

Lack of financial data is also a factor in ongoing talks between the union and the company, which wants to revise a labor agreement it agreed to last year. IUE-CWA wants information that justifies concessions Pittsburgh Brewing is seeking.

The brewery opposed the union's motion for a court-appointed auditor, saying there was enough financial data for creditors and investors to consider.

Pittsburgh Brewing filed for Chapter 11 bankruptcy court protection Dec. 7 after the Pittsburgh Water and Sewer Authority threatened to terminate service over unpaid bills.

Separately, Equitable Gas accused July 18 the brewery of violating a Feb. 28 court order requiring it to pay $20,000 for its utility bill in weekly installments of $2,500. The payments were to begin March 6 but "despite repeated demands, Equitable Gas has received no payments whatsoever," attorney James Wallace said in a motion filed with the court.

Equitable wants Judge McCullough to order the brewery to pay the $20,000 within 10 days of the judge's decision.


21 July, 2006