A Pittsburgh investment group will not submit a reorganization plan in U.S. Bankruptcy Court today to revive bankrupt Jones Brewing Co., opting to let the case chart its own course through bankruptcy.
Charles Dolfi, president of Consolidated Holding Investment & Property Group, said Thursday his group isn't removing itself from the case entirely, and is prepared to work to keep the brewery open and preserve the jobs of 35 brewers and bottlers.
Dolfi said the South Hills-based group would wait to see if bankruptcy court would appoint a trustee or convert the bankruptcy into a Chapter 7 liquidation. Under those circumstances, Consolidated would be an interested bidder for the assets, he said.
Jones Brewing, based in Smithton, owes $2.8 million to Prestige Bank, Pleasant Hills, its major secured creditor. Jones Brewing also owes $720,000 to other secured and unsecured creditors
Jones Brewing filed for Chapter 11 bankruptcy protection in November 2000. Beer production was cut off Jan. 10, a move that left 35 unionized brewers and bottlers jobless.
Brewery owner Gabriel M. Podlucky Jr. said that under the company's proposed reorganization plan, beer production would continue under an agreement with Pittsburgh Brewing Co., the Pittsburgh-based maker of Iron City beer. Jones' flagship Stoney's brand and several others would be brewed at Pittsburgh Brewing. Finished product would be shipped to Smithton, then distributed.
Any reorganization plan is subject to bankruptcy court approval. A hearing is scheduled today before Chief U.S. Bankruptcy Court Judge Judith K. Fitzgerald.
Dolfi estimates the worth of the brewery around $500,000 to $1 million if converted to Chapter 7, and success in a bidding process would enable a buyer to own the brewery "free and clear."
Meanwhile, the brewery's unions remain hopeful that the jobs won't be lost.
"We're waiting to back any bonafide plan that will keep the jobs in Smithton. The union is willing to work with whomever ends up with the brewery. The problems aren't so big they can't be solved," said Mark Argenas, business agent for Local 144b of the International Union of Electrical Workers/Communications Workers of America. The union local represents 21 bottlers at Jones.
