Updated to reflect added media reports of federal, state inquiries
NEW YORK ( TheStreet) -- After hanging up the cleats, former Boston Red Sox pitcher Curt Schilling is throwing in the towel on 38 Studios, the video game developer he founded and received millions in government aid to grow.
Schilling's company, a maker of role-playing video games like Kingdoms of Amalur, filed for bankruptcy on Thursday in a quick demise that's likely to cost Rhode Island taxpayers millions of dollars in losses.
As part of the filing, the company entered a Chapter 7 liquidation in a Delaware bankruptcy court, listing debts in excess of $100 million but assets of just between $10 million and $50 million. Much of that debt is likely owed to taxpayers after 38 Studios took $75 million in government financing to move from Massachusetts to Rhode Island, as part of what was to be a job-creating investment in the struggling state.
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