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Cranberry officials OK bankruptcy settlement

Westinghouse claim pays $10.5K

CRANBERRY TWP — Township supervisors on Thursday approved a settlement for a bankruptcy claim against Westinghouse Electric Company.

During a regular meeting of the board, supervisors unanimously approved the $10,580.77 settlement with the company, which filed for bankruptcy in March. Brookfield Business Partners finalized its $4.6 billion purchase of the Cranberry-based energy company Aug. 1, bringing Westinghouse out of Chapter 11 bankruptcy.

On Thursday, Township Manager Jerry Andree said the claim against Westinghouse had to do with sewer and water issues.

The motion indicates that Wind Down Co. was authorized in U.S. Bankruptcy Court to settle any outstanding debts on behalf of Westinghouse. A letter from township solicitor Paul Lalley to Bettelou Bertoncello, assistant township manager, indicates Westinghouse disputed all claims except for the $10,580.77.

Lalley wrote that while township officials could decide to turn down the agreement and fight for the full claim amount, proceedings could get expensive.

“As we discussed, litigating disputed claims in a multinational bankruptcy case in New York City will get very expensive very quickly,” Lalley wrote.

Bertoncello told supervisors Thursday that the claim was larger, but did not give specific details.

“There really was more to it, but it’s in New York, so it’s really not cost-effective for us to pursue the full amount,” she said.

Supervisor Bruce Hezlep agreed.

“It’s not in the best interest of our taxpayers,” he said.

The agreement must be returned by Oct. 29, officials said.

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