Video game company files for bankruptcy, criminal investigation launched

Posted on Friday, June 8th, 2012 at 8:48 pm    

38 Studios LLC, a video game company started by former Red Sox pitcher Curt Schilling, filed for bankruptcy yesterday in Delaware. According to the Boston Globe, 38 Studios owes more than $150 million but only has $22 million in assets.

The company filed for Chapter 7 bankruptcy after failing to reach a compromise with the state and its creditors. Rhode Island taxpayers may also be out millions of dollars after the state gave them a $75 million loan to create 450 jobs.

Federal authorities have launched several investigations into 38 Studios after questions about its failure to pay its workers, the disposition of government-backed loans, and its attempt to acquire and sell millions in tax credits have arose.

If you want to know more about your bankruptcy options for businesses, contact the Chapter 7 bankruptcy attorneys of the Bradford Law Offices, PLLC by calling 919-758-8879 today.