38 Studios’ Schilling sued by RBS Citizens bank

Curt Schilling, the former Red Sox baseball player and co-founder of the now bankrupt and scandal-laden 38 Studios, is being sued by RBS Citizens Bank for $2.4 million USD. In papers filed last week, the Rhode Island based bank (owned by Royal Bank of Scotland) claims that Schilling personally guaranteed the $2.4 million of loans but has subsequently “failed and refused” to pay up. According to the bank’s lawsuit, this makes it “a straightforward matter of liability”.

Citizens Bank gave 38 Studios a $2.06 million USD line of credit in October 2011. A separate business credit card account was left with a balance of almost $400,000 when the studio declared Chapter 7 bankruptcy earlier this month. 38 Studios folded with an estimated $150 million USD of debt owed to over 1,000 creditors, most of whom will see no return on their money as the company only has assets of around $22 million USD.

Thanks to his personal guarantee on the bank’s loans, Citizens is able to go after Schilling directly.

Other lawsuits may follow, as it’s reported that Schilling also gave his personal guarantee to a $1.5 million USD line of credit from Middlesex Savings Bank of Natick and obtained a loan for an unknown amount from Bank Rhode Island by putting up his personal collection of gold coins.

Source: Boston Globe