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.

Via WPRI and WPRI again

Previous Coverage

• Reports: Amalur Developer 38 Studios Struggling to Stay Afloat
• 38 Studios Missed First Loan Repayment
• Schilling’s 38 STudios Bounces $1.125 Million Check, Can’t Make Payroll
• 38 Studios Makes good on First Payment for $1.125 Million
• 38 Studios Lays Off Employees, Says Rhode Island Governor
• 38 Studios Execs Leave, Employees Unpaid Since May 1
• Screens from Project Copernicus Appear Online
• 38 Studios Lays Off Entire Staff
• Fired 38 Studios Employees Hit with Second Mortgages on Unsold Boston Houses
• 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
• Epic Games Helping Big Huge Games, Setting Up New Studio for Them
• 38 Studios Finally Filed for Bankruptcy Today
• Liquidation of 38 Studios Assets Gets Multi-Million Dollar Valuation
• Wife of 38 Studios Employee Illustrates Bad Business Fallout