38 Studios’ Curt Schilling Sued for $2 Million+ in Borrowed Funds

Things have gone from bad to worse for 38 Studios founder Curt Schilling, who is now being sued by the bank that provided him a $2 Million loan. The suit was filed shortly after 38 Studios filed for bankruptcy, a move spurned on by the company’s inability to pay back its own loan to the state of Rhode Island.

Citizens Bank is claiming that Schilling personally promised to pay back the aforementioned $2 Million loan and pay off a $350,000 company credit card. As we all know, though, Schilling was in a bit of a financial pickle, and therefore failed to deliver on his promise.

Since Schilling borrowed this money personally, or at least that is what is implied, that could “free” him from being roped into 38 Studios’ filing for bankruptcy. Citizens is trying to use the brokerage company Morgan Stanley Smith Barney in order to recoup those funds from Schilling’s personal bank account.

Here’s a brief statement from that firm regarding Schilling’s situation:

“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.”

What has been unclear up until this point is just how personally invested Schilling was in 38 Studios. A high profile sports star, Schilling was thought to be bankrolling a lot of 38 Studios creative efforts, which included a new MMO codenamed Project Copernicus and Kingdoms of Amalur: Reckoning, but if he couldn’t pay back a loan he personally promised he would things could be worse off for the pitcher than we thought.

Big Huge Games, a former subsidiary of 38 Studios and original creator of Reckoning, has since been rolled into Epic Games in the form of a Baltimore wing of the Gears of War developer, but not much progress has been made in helping all the former 38 Studios devs land safely on their feet. This definitely isn’t the last we will hear of Schilling or his financial troubles, but we hope that things can be resolved amicably.

Where do you fall on this whole 38 Studios financial issue? Should Curt Schilling be held accountable for money he borrowed to help finance a company that is now bankrupt?

Source: Gamasutra


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