38 Studios declares bankruptcy, state and fed authorities investigate
The $75 million tax-payer backed loan to 38 Studios and the $8.5 million from Bank Rhode Island are a part of the investigation by state police, attorney general’s office, the FBI, and the U.S. Attorney’s office. 38 Studios has declared Chapter 7 bankruptcy and the investigation into the studio behind Kingdoms of Amalur: Reckoning is now being investigated by state and federal authorities into its handling of finances, according to a report in the Providence Journal.
In a statement about Curt Schilling’s game company, 38 studios told The Journal: “This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."
What do you think about the problems at 38 Studios and the tax payer loan?