Curt Schilling Sued for $2.4 Million by Bank

15 Jun 2012

The Boston Globe is reporting that RBS Citizen, a bank based in Providence and creditor to 38 Studios, has sued ex-baseball player and company founder Curt Schilling to recover the $2.4 million it loaned to the company, on the basis that Schilling vouched for it personally making it "a straightforward matter of liability". A quote from the article:
RBS Citizens, owned by the Royal Bank of Scotland, said Schilling personally guaranteed the debt to the bank on October 26. But, RBS Citizens said, “Schilling has failed and refused” to pay it. “This is a straightforward matter of liability,” RBS Citizens said in the lawsuit, filed last week.

Schilling, who founded 38 Studios six years ago and lives in Medfield, could not be reached for comment. A lawyer for RBS Citizens declined to comment.

The bulk of the debt owed to RBS Citizens is a $2.06 million line of credit established by 38 Studios in October 2010. In addition, 38 Studios had a business credit card account with a $375,596 balance as of June 7, according to court documents.

The suit was filed in Suffolk Superior Court in Boston on June 7, hours after 38 Studios filed its bankruptcy case. When companies seek bankruptcy protection, they typically receive immediate relief from legal action by creditors, who must pursue their claims through the bankruptcy process.

In this case, RBS Citizens sued Schilling, ­not the company. RBS Citizens also sued Morgan Stanley Smith Barney, where RBS Citizens believes Schilling has financial accounts.

The former Red Sox pitcher could be on the hook for other loans, too.

Court documents indicate Schilling also personally guaranteed a $1.5 million line of credit from Middlesex Savings Bank of Natick. He also used his personal gold coin collection to help obtain a loan from Bank Rhode Island, a unit of Brookline Bancorp. in Brookline, for an unspecified amount, according to records.

Thanks Shacknews.