Curt Schilling Sued by Citizens Bank for $2.4 Million
Curt Schiling, former Red Sox pitching ace and the co-founder and co-owner of the now-defunct 38 Studios, is being sued by Citizens Bank for $2.4 million, WPRI reports. Apparently Schilling personally guaranteed to repay loans from the bank in the form of a $2 million letter of credit and $350,000 corporate credit card. But now that 38 Studios has filed for bankruptcy, it’s up to the courts to decide how the studio’s debt is restructured, and who gets what when.
Citizens Bank isn’t having that, though, suing Schilling personally. Since he hasn’t filed for bankruptcy, it stands to reason, he should be on the hook for money he personally guaranteed, the thinking seems to be.
According to the bank:
“Schilling absolutely and unconditionally guaranteed to the bank the payment and performance of all indebtedness, obligations and liabilities of 38 Studios to the bank, then existing or thereafter arising. […]Schilling is liable to the bank in the total amount of $2,394,240.40, plus thereafter accruing interest and late fees, costs and costs of collecting, including, without limitation, attorneys’ fees and expenses. Schilling has failed and refused, and continues to fail and refuse, to satisfy the outstanding indebtedness.”
In addition, the Rhode Island State Police, FBI and US Attorney’s office in Providence have issued subpoenas to Bank Rhode Island in pursuit of their investigation of the 38 Studios fiasco, says another WPRI report. The bank loaned the studio $8.5 million. The Rhode Island Development Corporation has also been served with a subpoena for their records regarding the $75 million taxpayer-backed loan that lured the company from Massachusetts to Rhode Island in the first place.
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- 38 Studios Lays Off Employees, Says Rhode Island Governor
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- Rhode Island Finds 38 Studios in Violation of Labor Laws for Sudden Layoffs
- Author R.A. Salvatore Weighs in on 38 Studios Fiasco
- Amalur 2 was in Pre-Production, Shopped Around to Other Publishers
- Schilling Speaks Out on 38 Studios Disaster
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- 38 Studios Finally Filed for Bankruptcy Today
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- Wife of 38 Studios Employee Illustrates Bad Business Fallout