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PROVIDENCE – Beleaguered video game company 38 Studios LLC last week declared Chapter 7 bankruptcy, as a formal investigation of the company began.
38 Studios spokesman Larry Solters told Providence Business News on June 7 that the action came after several weeks of contemplation and review by the company founded by former Red Sox pitcher Curt Schilling.
“After ongoing negotiations with the state of Rhode Island and potential investors and other interested parties, the company has been unable to find a solution to the current stalemate,” said Solters via email.
Jim Martin, spokesman for U.S. Attorney Peter F. Neronha, said his office has been in contact with R.I. State Police and the FBI regarding an investigation of 38 Studios. Martin would not elaborate on the nature of the investigation or which law enforcement agency initiated it.
Both 38 Studios and 38 Studios Baltimore LLC – formerly Big Huge Games – filed for bankruptcy June 7 in Delaware.
In court documents, 38 Studios said it owes between $100 million and $500 million to at least 1,000 creditors, many of whom are in Rhode Island, reported WPRI.com. The company estimated its assets at between $10 million and $50 million. •