Curt Schilling’s Video-Game Company Files for Bankruptcy
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38 Studios LLC, the video-game maker founded by former Boston Red Sox pitcher Curt Schilling, filed for bankruptcy after firing employees in Rhode Island, and officials said the company is the subject of a federal probe.
38 Studios, which had been operating with help from $75 million in state government bonds, filed for liquidation yesterday under Chapter 7 of the bankruptcy code, saying it owes creditors about $150.7 million. Its assets total $21.7 million, according to the filing in U.S. Bankruptcy Court in Wilmington, Delaware. Under Chapter 7, a court-appointed trustee liquidates the assets and distributes the proceeds to creditors.