The lights are on
Curt Schilling's beleaguered video game company has filed for chapter 7 bankruptcy. According to documents related to the filing, the company owes $100 million in Baltimore alone.
Given that the 38 Studios' Baltimore LLC branch of the company is only one of four 38 Studios affiliate companies (the others being 38 Studios LLC, Mercury Project LLC, and Precision Jobs LLC), the actual amount of debt owed by 38 Studios is likely much higher than $100 million. With the filing, it's now likely that the State of Rhode Island will be responsible for the $75 million dollar loan to 38 Studios that it backed as part of a job creation initiative.
According to reports, the filing listed 45 pages worth of creditors.
As part the bankruptcy filing, all 38 Studios assets will be liquidated. Unfortunately, the value of the company's outstanding assets only total between $500,000 and $1 million.
This is bad news for Schilling, but things might get worse. According to Col. Steven G. O'Donnell of the Rhode Island State Police, "[We] are working together to investigate activities that have recently come to light at 38 Studios." We assume this is an investigation into fraud or other illegal business practices. Recently, the Providence Journal reported that 38 Studios improperly secured bank loans secured by promised Rhode Island state film tax credits. It's also under question as to whether a video game developer was even eligible for the film tax credit.
Rhode Island governor Lincoln Chafee will hold a press conference today at 4 p.m. EST to address the news.
Source: Providence Journal
Email the author Matt Helgeson, or follow on Twitter, and Game Informer.
Damn. I really liked what they did with Amalur especially as a first attempt. I had a lot of hope for this hometown team. Thank God we still have Ken Levine.. I really hope something good can come out of this. It doesn't bode well for anyone hoping to get in to the development business. At this rate we'll never have any new companies..
This is so incredibly disappointing.
I really liked KoA... :(
Man, i loved reckoning. but i feel really bad for all the tax payers who have to pay for curt's mistakes.
This can only hurt the industry's image, which is a shame. What the hell Curt, get your *** together.
To to bad KoA was a pretty good game would have really really liked to have seen a part 2, oh well hopefully Red Dead Redemption 2 can make me forget all about KoA 2
Son, press the "NO" button, QUICK.
Fishy, real fishy.
I heard he didn't payout his payroll to the employees for the last two weeks they worked:/
Wow, really guys? There goes the industry's reputation
A silver lining to all of this is that Epic games has hired many people from Big Huge Games and they are now Epic Games Baltimore.