Curt Schilling personally sued? Yep, the former ace pitcher has been sued for $2.4 million by Citizens Bank over a video game loan.
As you may have heard, Curt Schilling's dip into the video game market has not been very successful. His company, 38 Studios LLC, filed for bankruptcy protection last week.
But while creditors of the company may be out of luck, creditors of Schilling personally, may still be able to get its money back.
It was revealed last week that the troubled 38 Studios was more than $150 million in debt, with only $22 million in assets, reports The Boston Globe. By filing for Chapter 7 bankruptcy, the company will likely unwind and its assets distributed among the remaining creditors with the remaining debt discharged. This means that the majority of lenders to 38 Studios will get very little (if anything) back from their loans.
However, not wanting to lose its money, Citizens Bank sued Curt Schilling himself in an effort to recover its $2.4 million loan, reports the Globe. To sue Schilling and not the company, the bank argues that Schilling personally guaranteed the debt. So, the loan was a debt to Curt Schilling and not 38 Studios, and 38 Studios filing Chapter 7 bankruptcy would be irrelevant to the bank collecting its debt from Schilling.
It's not clear how Schilling personally guaranteed the loan to Citizens Bank, but in other cases, it was reported that he personally backed loans for his video game company by using his gold coin collection.
Curt Schilling sued personally for $2.4 million is certainly one way to try to get the money back. But to recover the debt, Citizens Bank will have to show that the former Boston Red Sox pitcher is personally responsible for the loan, and not his failed company 38 Studios LLC.
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