Sunday, June 14, 2009

Water Authority to Iron CIty: "Pay Up"

Now that Iron City Brewery is moving its production work out of Pittsburgh, the Pittsburgh Water and Sewer Authority wants the company to pay the $600,000 that it owes. Last week Iron City President Timothy Hickman announced that they would halt production at their 128 year old facility in Lawrenceville and move the brewing to Latrobe, where Rolling Rock used to be made. Iron City headquarters will remain in Pittsburgh.
The Water and Sewer Authority made concession in 2007 that allowed Iron City to emerge from bankruptcy. The company originally owed the authority $2.7 million for unpaid bills. That was reduced to $1.5 million of which $460,000 was repaid, $40,000 was waived due to early repayment, and $400,000 was forgiven due to plant improvements. Hickman says he will wait for the Authority's letter before commenting, but he did say the firm will honor its agreements.

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