GLENSHAW GLASS IN RECEIVERSHIP
Published: Saturday, November 06, 2004
By Jim McKay and Marylynne Pitz
Pittsburgh Post-Gazette
Financially troubled Glenshaw Glass was put into receivership yesterday and company owner and president John Ghaznavi resigned, according to Lou Brudnock, president of the largest union local at the glassmaker.
Brudnock, president of Local 134 of the Glass, Molders, Pottery, Plastics and Allied Workers International Union, said he learned of the events at a 6 p.m. meeting at the plant. He said the receivership was ordered by Allegheny County Common Pleas Judge Robert Horgos.
The receivership was forced by a company lender, PNC Bank.
“The current owner, John Ghaznavi, was removed from control of the company by Judge Horgos. PNC Bank has installed The
Meridian Group to take over control of the company and work with the union to save the plant. We're viewing this as a step forward in order to save this plant,” Brudnock said.
Ghaznavi took over the plant in 1988 and later acquired controlling interest in several other glass companies that became part of Consumers Packaging Inc. of Toronto, Ontario. In 2001, Ghaznavi left Consumers Packaging, which had filed for bankruptcy in Canada, and a year later agreed to repurchase Glenshaw from the company.
Recently, Ghaznavi had asked the union for concessions, but the request was rejected. A potential investor apparently pulled out after the plant was damaged by the Sept. 17 flooding from the remnants of Hurricane Ivan.
The Meridian Group, Brudnock said, “will be working with the creditors and also potential investors who are looking to purchase this plant. We're hoping that in the next two or three weeks, this can be accomplished.”
The plant’s local unions, Brudnock said, will attend a meeting Wednesday to discuss ways employees can participate in the plant’s revival and to meet with representatives of The
Meridian Group.
The plant, which has operated in the Glenshaw section of Shaler since 1895, produces bottles for Iron City and Yuengling beer as well as wine and whiskey bottles and other glass containers.
Margaret Good, president of The Meridian
Group, will oversee the receivership. She could not be reached for comment last night.
Brudnock said union officials met with Meridian representatives last night, who told them that 14 supervisory employees were fired yesterday.
“They informed us that they were cutting costs and trying to improve the profitability of the plant. They want to meet with our membership next week to discuss ways to save money here and more or less help us get through this until we get a buyer. They claim they have potential investors looking at it right now.”
While the glassmaker is in receivership, Brudnock said, “The bank has agreed to extend financing for this period while we find a buyer.”
Glenshaw Glass employees have good cause for concern. On Thursday, 340 people lost their jobs at the Anchor Glass Container Corp. plant in South Connellsville, Fayette County, when the business closed.
The Sept. 17 flooding in Shaler knocked the Glenshaw firm’s furnaces out of commission.
“We had 10 feet of water in the basement, which effectively knocked out the furnaces. We had to get them restarted. We got two of the furnaces started and we were working on the third one and it developed a leak and it leaked molten glass into our basement. It’s out for repairs,” Brudnock said.
The glassmaker needs new leadership, he added.
“It’s a good force here. We make quality containers. In the industry, our containers are really the standard. We're just going through some tough times. A new owner is what we need.”
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