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RI, feds probing all finances of Schilling company

    by ERIKA NIEDOWSKI and LAURA CRIMALDI, The Associated Press
    Published 

PROVIDENCE, R.I. — State and federal authorities are investigating "all financial transactions" of former Phillies pitcher Curt Schilling's video gaming company.

Col. Steven O'Donnell, the Rhode Island state police superintendent, says state police, the state attorney general, the U.S. attorney in Rhode Island and the FBI are conducting the investigation into 38 Studios. He didn't elaborate.

The Providence-based company, which laid off all its employees last month, filed for bankruptcy in Delaware Thursday.

38 Studios relocated from Massachusetts in 2010 after Rhode Island officials offered a $75 million loan guarantee.

The company owes $150.7 million and has assets of $21.7 million.

Its biggest liability is $115.9 million in debt from bonds backed by the state, interest and fees to Rhode Island. Taxpayers are likely on the hook for some of that.

The state is now trying how much of the $75 million loan guarantee it might lose. The state believes it will be first in the line of creditors of 38 Studios, but it does not know how much of its investment it might recoup.