NEW: 38 Studios Bankruptcy Case Moving to RI
Thursday, August 09, 2012
A federal judge has moved the 38 Studios bankruptcy case to Rhode Island.
A receiver is now expected to be appointed and the failed video game company's remaining assets will be sold off.
38 Studios filed for bankruptcy in July, several weeks after it laid off every single employee in its offices in Providence and Baltimore. The company cash-flow problems first came to light when it defaulted on a $1.125 million payment due to the state’s Economic Development Corporation (EDC) in May.
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The company, which has less than $22 million in assets, owes just over $150 million to over 1,000 mostly-unsecured creditors, court records show. The state is the largest secured creditor at $115.9 million.
