Immediately after Rhode Island extended the beleaguered 38 Studios a $75 million dollar loan, Curt Schilling's company took out a $2 million letter of credit from Citizens Bank as the security deposit on their Providence offices. Well, that's all gone now. 38 Studios is bankrupt, the office is closed, there is effectively no more company. But the bank wants its money back, and it's hoping to collect not from 38 Studios' assets, but directly from Schilling's.
Citizens Bank has filed suit against Schilling for $2.4 million, covering the security deposit and a corporate line of credit he took out. Why Schilling and not the company? The lawsuit says that Schilling personally guaranteed the loans, and they're asking the court to freeze his assets until he repays them. Last week we wrote that the federal investigation into 38 Studios was as bad as it could get for Schilling—we were wrong.