State to take control of failed game studio's remaining valuables to balance its debts
The assets of defunct Rhode Island-based developer 38 Studios have been transferred to state-controlled bodies that are now looking to sell them on.
The Rhode Island Economic Development Corp and the Bank of New York Mellon Trust Co took control of 38’s remaining assets following a court hearing in Delaware, Bloomberg reports.
38 Studios, which was founded by former Red Sox player Curt Schilling, declared its bankruptcy in June, one month after revealing it had missed repayments on a $75m loan.
The agency and bank said in court papers that it was necessary to take this action, as “all or substantially all of the intellectual property could be irretrievably lost” when the trustee firm appointed to dismantle the company begins abandoning 38 Studios’ property.
The Economic Development Corp and the BNY Mellon Trust – a representative of the bank that gave 38 Studios the $75m loan – intend to sell the company’s assets to make up for its outstanding debts.
38 Studios had received $49.8m of the $75m loan and had failed to meet its payments after entering financial difficulties, according to a disclosure notice from the company that has previously been reported.