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EDC Votes to let 38 Studios Trustee Explore Claims

EDC Votes to let 38 Studios Trustee Explore Claims

       PROVIDENCE, R.I. (AP) _ Rhode Island's economic development agency has voted to let the trustee handling the 38 Studios bankruptcy use bankruptcy funds to explore bringing potential claims against former company executives.
 
       Economic Development Corp. attorney Tom Carlotto says the board voted in executive session Monday night to allow the federal bankruptcy trustee to use up to $150,000 to "investigate potential claims'' against 38 Studios officers, directors and others.
 
       The EDC already is suing former Red Sox pitcher and 38 Studios founder Curt Schilling, other company executives and former EDC officials. The suit claims they misled the EDC into approving a $75 million loan guarantee for the company in 2010. 38 Studios went bankrupt last year.
 
       Carlotto said a final agreement to move forward hasn't been reached.

 

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