USA: Judge scheduled an emergency hearing for Pittsburgh Brewing
In its latest financial crisis, Pittsburgh Brewing Co. said it could be forced to close unless a federal bankruptcy judge on Thursday, November 16th, permits it to finance payment of about $118,000 for its business insurance premiums, Pittsburgh Tribune-Review commented on November 15.
U.S. Bankruptcy Judge M. Bruce McCullough scheduled an emergency hearing on the brewery's request for approval of the commercial insurance financing agreement with Bank Direct Capital Finance LLC of Lake Forest, Ill. The premiums cover one year for a package of insurance policies that include general business coverage, automobile and pollution liability.
Without such insurance coverage, "the debtor would be forced to cease operations," Pittsburgh Brewing said in court documents.
The Lawrenceville brewery asked for the hearing because insurance coverage primarily through Cincinnati Insurance Co. of Cincinnati is set to begin Friday. The brewery said it asked for the hearing because of "circumstances beyond the debtor's control" and not because of its lack of diligence.
The company did not disclose the identity of its insurer or why it did not renew those policies. Businesses customarily pay for insurance in one lump sum at the beginning of a policy year, and some use finance companies like Bank Direct if they cannot afford an up front payment.
Pittsburgh Brewing attorney Robert O. Lampl could not be reached for comment.
Pittsburgh Brewing promised to pay Bank Direct a total of $121,592, including fees, in nine monthly payments of $13,510, beginning Dec. 17. If Pittsburgh Brewing defaults on the financing payments, Bank Direct will have the right to cancel the policies and get the unearned premiums of the policies -- essentially a rebate of the premiums from the remaining months of the policies. The brewery says Bank Direct will have a security interest in other unspecified items.
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