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RI trying to determine loss on $75M investment after Schilling's firm bankruptcy
PROVIDENCE, R.I. (AP) ' The state of Rhode Island is trying to determine how much it might lose in a $75 million loan guarantee deal for former Red Sox pitcher Curt Schilling's video gaming company after the firm's bankruptcy filing this week.
The state believes it will be first in the line of creditors of 38 Studios, but it does not know how much of its investment it might recoup.
The firm filed for bankruptcy in Delaware on Thursday.
38 Studios moved to Providence from Massachusetts in 2010 after the state gave it a $75 million loan guarantee.
Former employees are owed millions, and several whose homes never sold under a relocation program appear to be on the hook for the mortgages.
Federal and state authorities have launched investigations into the company's financial transactions.