06/12/2012 08:38:00 AM EST
Company Founded by Former Baseball Pitcher Curt Schilling Files for Bankruptcy
WILMINGTON, Del. - (Mealey's) The
video game company founded by former Major League Baseball pitcher Curt
Schilling filed for Chapter 7 bankruptcy on June 7 in the U.S. Bankruptcy Court
for the District of Delaware, listing $ 150 million in debt compared to $ 21
million in assets (In Re: 38 Studios, No. 12-11743, Chapter 7, D. Del. Bkcy.).
Schilling's company, 38 Studios, filed for bankruptcy after it defaulted on a $
75 million loan guarantee from the State of Rhode Island.
In its petition, 38 Studios indicated it has between 1,000 and 5,000 creditors.
In 2010, the Rhode Island Economic Development Corp. (RIEDC) invited 38 Studios
to move to Rhode Island by offering the $ 75 million loan guarantee at issue.
The loan was part of a job creation initiative by RIEDC.
Schilling, who pitched for the Boston Red Sox, Philadelphia Phillies and
Arizona Diamondbacks over an 18-year major league career, owns an 83 percent
stake in the company, according to court records.
38 Studios is represented by Laura Davis Jones of Pachulski Stang Ziehl &
Jones in Wilmington.
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