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

Published 2 years ago by

Schilling Sued for Overdue Loan

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

 

TAGS: 38 Studios, Electronic Arts, Kingdoms of Amalur Reckoning

7 Comments

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  1. Hey, apparently we all help bankroll companies that go under all of the time. It’s normal!! lol

  2. And all of a sudden, big banks realize it’s not funny when someone gambles away your money… The pot calling the kettle black.

  3. Should Curt Schilling be held accountable for money he borrowed to help finance a company that is now bankrupt?

    Yes, Yes, and Yes…..

    Why should Rhode Island Taxpayers pay for his failure…..

    If he took a loan from a bank then he is obligated to pay that loan back…Why should he be any different then the average person who owes on a loan….

    But, like a typical Republican he feels he isn’t obligated to anyone..Like a typical Republican he feels he don’t have to pay anything back….

    I can remember him campaigning for a top Republican up in N.H. and his motto was for the bank bailouts…Let the free market take care of it…Well Curt, maybe the free market should take care of it and you stand on your own and not ask the good Taxpayers of Rhode Island pay for your mistake…Do it like a good little Republican….

    • I wonder if us tax payers will get our money back from the people who invested in Solyndra…

      Oh, oops, my mistake man, back to the topic at hand… *coughs*

      • zing

    • You must not understand the term “Bankruptcy”

  4. Curt’s company was a pipe dream. It’s too bad that RI hadn’t seen what MA did when doing an analysis of his business plan. Too big…too fast… additionally, the very things that Curt is against(gov’t welfare/subsidies) are those things that artificially propped his failed company up and destroy lives for hundreds of families. Let the cards fall where they may… and if Curt put his personal gurantee on those bank loans, then there is definitely recourse for them. Maybe its time to tighten the belt fiscally for Mr. Schilling.

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