RI may redeem some money from 38 Studios assets
Posted: 8/9/2012 8:38:47 AM
Updated: 8/9/2012 11:31:03 AM
Rhode Island may be able to recover some of the $75 million that was loaned to Curt Schillings failed video game company, 38 Studios, by the Rhode Island Economic Development Corporation.
U.S. Bankruptcy Judge Mary Walrath granted a request from the RI EDC and Bank of New York Mello Trust Co., the trustee for the $75 million loan secured by Rhode Island, to take control of the companys assets. The state and bank will now be able to try to sell the companys intellectual property and use the proceeds toward paying off the loan.
The bankruptcy proceeding moved back to Rhode Island on Thursday when the company filed receivership petitions in Providence County Superior Court.
On June 7 the company filed for chapter 7 liquidation after firing all of its employees. This came after the company made a late loan payment to Rhode Island after the loan went into default.Dee DeQuattro | WPRO News
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