The tragic tale of 38 Studios just keeps getting worse. On top of the developer declaring bankruptcy and an employee's wife revealing details about the company's last days, co-founder Curt Schilling is being sued by Citizen's Bank to recover millions of dollars in loans he guaranteed for the studio.
Although the Providence, RI-based bank has little chance of collecting any money from 38 Studios, the bank said that Schilling personally vouched for a $2.4 million loan for the company, and they are suing him to get it back, according to a report in the Boston Globe. "Schilling has failed and refused [to pay the loan]. This is a straightforward matter of liability," the bank said in its suit.
Court documents show that the $2.4 million roughly breaks down to a $2.06 million line of credit from October 2010 and a 38 Studios' credit card account with a $375,596 balance as of June 7.
The Globe said Schilling guaranteed other loans for the company, including a $1.5 million line of credit from Middlesex Savings Bank, and a loan for an unspecified amount from Bank Rhode Island, in which Schilling used a personal gold coin collection as collateral.