The company which runs the Summerhall venue at the former Royal Dick Vet School had a very successful Fringe festival, selling more than 36,000 tickets for its eclectic and acclaimed mix of theatre, dance, children's and music events.
However, it is at the centre of a battle over its tax payments with Her Majesty's Revenue and Customs (HMRC).
HMRC lodged a petition with Edinburgh Sheriff Court in early August, which has now been officially advertised, asking for an order that the company that runs the venue, Summerhall Management Ltd, be wound up and for the court to appoint a liquidator.
Summerhall now has around a week to reach an agreement over the unpaid taxes or HMRC could further press the issue.
A spokesman for HMRC said he could not comment on specific cases or the amounts involved.
The petitions used in this way are often seen as a "line in the sand", or final chance for companies to pay its bills. It is thought, however, that the management of Summerhall, based in the large former academic building near the Meadows, will try to either settle the bills in total or reach an agreement with the tax authorities in the near future.
Last night a statement from the company said: "Summerhall management are aware of the situation and are seeking advice on the next steps forward, and to rectify it."
It is understood the unpaid monies are the result of a "mix-up" or oversight connected to the rapid expansion of the venue in recent months.
Insiders say there is no danger to the operation of the venue in the future, and its autumn schedule and next year's festival season will go ahead as planned.
No member of the company's management wanted to comment on the matter.
This year the venue and its shows were among the brightest stars of the Fringe, with its ticket sales up 275% on the 2012 festival.
These sales did not include visitors to the free visual arts programme which included works by Michael Nyman, Fiona Banners, and Gregor Schneider's controversial Süßer Duft Edinburgh 2013, which featured a room of naked men.
Summerhall first opened in 2011 as an arts complex, and made its name on the Fringe with Hotel Medea in the same year.
The extensive B-listed Edwardian building, containing 500 rooms and more than 130,000 sq ft of space on a two-acre site, was sold by Edinburgh University to a private investor for around £3m that year. The venue is not just a festival venue, as it is open throughout the year with visual arts shows, a bar, shop and The Royal Dick, the venue's pub.
A recent company statement said it was looking forward to welcoming back the Manipulate puppet festival and the International Science Festival, among many other forthcoming attractions.