The saga of Curt Schilling, 38 Studios and the state of Rhode Island continues. Yesterday the Bank of New York Mellon Trust Co and Rhode Island Economic Development Corp. won a court decision that allows Rhode Island possession of all assets of 38 Studios. For those who haven't been keeping up with the dealings between Schilling's studio and Rhode Island, here's a summary:
Last year, 38 Studios borrowed $75 million from the state of Rhode Island to relocate from Massachusetts to Rhode Island. The state granted the loan, and to repay what they had borrowed, the studio pledged all of its assets, patents, software and other property to Rhode Island as collateral. 38 Studios only released one game, the EA published Kingdoms of Amalur and was working on a project called Copernicus. Unfortunately the game did not meet sales expectations and the studio filed for bankruptcy.
US Bankruptcy Judge Mary Walrath granted the request to both the state and Mellon Trust in a hearing in Wilmington, Delaware. While its not strange to hear developer pledging its IP to a backer like a publisher, as its a common practice in the video game industry. What is strange is that a developer pledged its assets to a state government. Now Rhode Island is looking a buyer to make up for the $75 million risk they took in trying to court the video game industry to Rhode Island.