Wednesday, September 2, 2015

Ex-Phillie Schilling's taxpayer-backed company bankrupt

Plans liquidation

Ex-Phillie Schilling's taxpayer-backed company bankrupt

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Update: Bond Buyer article says Rhode Island hopes to salvage company; also references federal criminal inquiry here.

Earlier: 38 Studios, the video-game company founded by former pro ballplayer Curt Schilling with $75 million of Rhode Island public funds, has filed for bankruptcy liquidation under Chapter 7 of the US bankruptcy code in Wilmington, Del., listing more than 200 creditors.

The move comes after state officials last month refused to give Schilling more millions. The company laid off its entire staff of about 300 people shortly afterward.

Creditors include a lot of individuals and business services (cafeteria operator Aramark, Blue Cross of Rhode Island and other employee-benefit companies, restaurants and locksmiths, art dealers, an investigation firm and a limo service, multiple state and federal tax offices, Microsoft, Sony Computer Entertainment and other tech vendors, Philadelphia law firm Fox Rothschild LLP, and dozens of individuals in the greater Providence and Baltimore areas, where 38 Studios had offices.  Law firm Pachulski Stang Ziehl & Jones LLP is helping 38 president William C. Thomas manage the company in liquidation.

More coverage
 
Chapter 13 filing for Curt Schilling's company
 
Ex-Phillie's firm defaulted on $75M state loan
PDFs in the Schilling case
 
The bankruptcy filing
 
A list of creditors

The Associated Press reports that Jim Martin, a spokesman for the U.S. attorney in Rhode Island, said his office had been in contact with the FBI and state police but didn't say what it's investigating.

See the bankruptcy filing and a list of creditors.

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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