Totin Contracting Inc. of Sharpsville, a contractor in the West Salem Township sewer and Greenville sports complex projects, is scheduled to appear in bankruptcy court early next month.

First National Bank of Pennsylvania filed a motion to convert Totin Contracting's bankruptcy from Chapter 11 reorganization to Chapter 7 liquidation.

Under Chapter 7, all of a company's assets are sold.

Companies can be liquidated because their Chapter 11 reorganization plans were unsuccessful remedies or not being followed.

"Conversion (to Chapter 7) would mean this debtor is out of business," said Hermitage lawyer Ray Bartholomew, who was hired by the West Salem Township Municipal Sewage Authority to represent its interests in bankruptcy court.

Totin has not completed all of its contracted work in either the sewer or sports complex project. Totin's bond company could be called upon to complete the unfinished work.

The sports complex, which was projected to cost $1.8 million, is 15 months behind schedule and an estimated $200,000 over budget.

The Borough of Greenville -- based on the recommendation of the Citizens Steering Committee on Recreational Projects -- last week called for a criminal probe into problems with the project and for Totin's performance bond and another contractor's to be "put on written notice of (its) alleged nonconformities of the project."

If Totin's bankruptcy is converted to Chapter 7, Bartholomew said, "A Chapter 7 trustee would supervise the liquidation of assets and secured creditors would get paid."

The bankruptcy hearing is set for March 4 in Erie. It is a continuation of a hearing that began Feb. 13 and lasted about 90 minutes, Bartholomew said.