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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.
38 Studios based in Providence filed for Chapter 7 bankruptcy liquidation on June 7 after firing employees.
The agency and bank said in court papers they needed to take action because if the trustee appointed to dismantle the game-maker received permission to abandon computer equipment “all or substantially all of the intellectual property could be irretrievably lost.” The intellectual property, which makes up the “vast majority” of the company’s value, will take weeks to preserve and transfer to new servers, the agency and bank said.