More Legal Trouble Could Be On the Way For 38 Studios

It looks like former Red Sox pitcher and 38 Studios founder Curt Schilling – along with associates of the company – could face legal problems on another front. Last week the Rhode Island Economic Development Corp. approved a request by the federal bankruptcy court trustee to use up to $150,000 in assets recovered from the company to further investigate its former officers, directors, and other parties. If this investigation turns up any further information, it could lead to additional legal actions against 38 Studios.

This news comes from EDC attorney Thomas Carlotto, who said that this could prove to be a "fruitful and beneficial" course of action for finding more funds to pay down the $75 million loan guarantee the EDC board approved in 2010 to lure 38 Studios to Rhode Island.

This would be in addition to a lawsuit filed by the state against Schilling. 38 Studios filed for bankruptcy last year, leaving the state on the hook to pay back the $90 million financed with bonds.

Carlotto said that the trustee also needs the approval of The Bank of New York Mellon, the bond trustee, and the bond insurer.

Last week a Rhode Island judge denied Schilling's request to dismiss the case filed by the state. The state is on the hook for $90 million, the result of 38 Studios failing to pay back the loan that was funded by bonds. State lawmakers are also looking into how the 38 Studios loan came to fruition by sifting through documents and emails related to the deal…

We will have more on this story as it develops.

Source: The Republic

Tweet about this on TwitterShare on FacebookShare on Google+Share on RedditEmail this to someone

Comments are closed.