38 Studios’ Possessions Now Belong To Rhode Island

Posted on Aug 10 2012 - 2:38pm by Jose Salazar
38 Studios’ Possessions Now Belong To Rhode Island
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After this long and winding mess, the state of Rhode Island will take possession of the assets held by bankrupted 38 Studios LLC. Founded by former Red Sox pitcher Curt Schilling, 38 has done the pricy MMORPG Kingdoms of Amalur: Reckoning and was working on a project code named Copernicus. The game maker filed for bankruptcy after firing all of its employees on June 7. Bloomberg:

The Rhode Island Economic Development Corp. and Bank of New York Mellon Trust Co. won court approval to take possession of assets of 38 Studios LLC, the bankrupt video-game maker founded by former Boston Red Sox pitcher Curt Schilling.
 
U.S. Bankruptcy Judge Mary Walrath granted the Rhode Island organization and the bank’s request at a hearing today in Wilmington, Delaware.
 
The state economic development agency and BNY Mellon Trust, a unit of Bank of New York Mellon Corp., the trustee for a $75 million loan made to the bankrupt game-maker, asked for permission to take control of the assets, such as games’intellectual property, and try to sell them, possibly through a receivership proceeding in Rhode Island, and apply the proceeds to what’s owed on the loan.

REID and New York Mellon argued that they needed to act if the entity entrusted to dismantle 38 was allowed to leave the technological equipment used by the studio “all or substantially all of the intellectual property could be irretrievably lost.” The bank RI agency ontended that the intellectual property made up the lion’s share of 38 Studios’ value, and that it would take weeks to record and transfer to other servers. A mess indeed.