38 Studios declares bankruptcy as formal investigation begins

(Updated, 6:00 p.m.) PROVIDENCE – Former Boston Red Sox pitcher Curt Schilling’s beleaguered video game company 38 Studios LLC filed for Chapter 7 bankruptcy protection Thursday as state and federal law enforcement agencies revealed they are investigating the firm, which received a $75 million taxpayer-backed loan from Rhode Island. 38 Studios spokesperson Larry Solters told…

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  1. Wow! a formal investigation. I’m sure that will accomplish nothing. We already know this was a corrupt, backroom, crony-capitslist deal that was doomed to failure from the beginning. When will the EDC start providing loans to help capitalize small, well established, RI businesses that need to restructure their debt at historic low interest rates and help with working capital needs so small businesses can create jobs?
    The EDC’s current loan program specifies that loans will represent only 25% of total need; market-plus interest rates, and 5 year amortizations. That’s a joke. RI small businesses need loans that represent 100% of need; fixed below-market interest rates, and ten year amortizations. That would have an impact. Look at what just happened the EDC just lost the taxpayers of RI $100,000,000. I can tell you with 100% confidence that, if they had taken my approach the loan losses would have been negligable, no where near what this debacle with Schilling is going to end up costing us. Thanks for nothing EDC. Erik Warner, President, TJ Russell Supply, Bristol, RI