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Schilling’s 38 Studios Files For Bankruptcy

38 Studios, former Red Sox pitcher Curt Schilling’s embattled Rhode Island-based video game company, has filed for bankruptcy protection, according to the Associated Press.

The Providence Journal reports the following statement from the company:

This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate.

The ProJo also reports that the bankruptcy filing comes as state and federal authorities have launched an investigation into 38 Studios.

Update at 1:15 p.m.: The AP adds that the filing, made Thursday in U.S. Bankruptcy in Delaware, comes after the company last month laid off all of its staff.

As we’ve reported before, Schilling moved his 38 Studios to Providence from Massachusetts in 2010 after Rhode Island offered the company a $75 million loan guarantee.

Update at 1:35 p.m.: Rhode Island State Police Col. Steven O’Donnell told WPRI.com that the investigation is examining “both the money that came from the state as well as the money that came from Bank Rhode Island.”

Bloomberg (via the Boston Globe) reports that 38 Studios filed for Chapter 7 bankruptcy, which means that an appointed trustee will liquidate the company’s assets and distribute the proceeds to creditors.

Update at 2:30 p.m.: WBUR’s Mark Degon has these details on the company’s petition for liquidation:

38 Studios lists debts of between $100 million and $500 million.

It says its assets are worth only somewhere between $10 and $50 million.

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  • Mike from Rutland

    Not only did Curt screw the residents of RI, he probably sent whatever Sox fans we had in RI packing and into the arms of the Yankees!  I wonder what he’ll be best remembered for?  Game 6 of the 2004 ALCS “bloody sock” match between the Red Sox and Yanks.  -OR-  Tanking a company after hypocritically taking $75 million in government funding while standing behind the Republican mindset of “government shouldn’t pick winners and losers.”

  • Mike from Boston

    I love how Mr. Small Government Conservative cost the RI government more than any welfare recipient could have in their wildest dreams.  I guess for his kind big bad government is a problem unless your name is on the check. That cash could have fully covered scores or Rhode Island kids at URI or where ever, but it was money well spent because  additional aid for education will ruin this country. I also love how this chicken hawk can always be seen wearing various military hats but if you asked him for a DD-214 he’d have a blank stare. 

  • X-Ray

    Liabilities ten times over assets? What was the “management” doing? They
    must have been incompetent. It would seem that even the additional loans
    Shilling was looking for wouldn’t have been enough; the company was in a very
    deep hole with no way out of the predicament. Denial, denial, denial. Were the
    RI loan sponsors lied to by the company?

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