The proposed buyer of Pittsburgh Brewing has come to terms with almost all of the beleaguered brewer's creditors but is asking for an extra week to negotiate an agreement with the creditor that precipitated the company's bankruptcy: the Pittsburgh Water and Sewer Authority.

Meanwhile, Pittsburgh Brewing's attorney told U.S. Bankruptcy Court Chief Judge M. Bruce McCullough today his company needs a $250,000 loan because it can't buy raw ingredients to make beer.

"This company is not able to produce the beer it could be selling right now," Robert O. Lampl said. "We're on COD [cash on delivery] with certain vendors."

The additional financing would come from the proposed buyer, a group led by Connecticut businessman John N. Milne. Mr. Milne's investors have already lent Pittsburgh Brewing $500,000 but won't provide additional financing unless they are comfortable they can negotiate a reorganization plan all creditors can support, Mr. Lampl said.

He hopes to come to terms with the water and sewer authority by a hearing scheduled for next Thursday. Judge McCullough will consider the additional financing at the hearing.

The agency's threat to terminate service over more than $2 million in unpaid bills prompted Pittsburgh Brewing to seek bankruptcy protection in December 2005. The reorganization plan Mr. Milne's group filed in February calls for paying the authority $250,000, less than 10 cents on the dollar based on the authority's $2.7 million claim.

More details in tomorrow's Pittsburgh Post-Gazette.