According to the Pennsylvania Department of Revenue, the office filed a motion on Oct. 9 requesting that a bankruptcy court consider converting a Chapter 11 bankruptcy protection case for the Coliseum Entertainment Megaplex to a liquidation case. The revenue department said Coliseum Entertainment Group Inc., the coliseum's owners, did not pay the more than $15,000 in state taxes owed on the property. The development company filed Chapter 11 in 2008.
In September, the $1.7 billion Members 1st in Mechanicsburg, Pa., paid off back taxes for 2007 and 2008 totaling $120,000 for the entertainment megaplex. The credit union owns the $6.2 million mortgage on the property.
The revenue department said in order for the Coliseum Entertainment Megaplex to emerge from Chapter 11 or be put up for sale, all taxes must be paid first. According to the bankruptcy court, a sale of the business has not yet been approved.