WILMINGTON, Del. — A top executive for a failed video game company led by former Boston Red Sox pitcher Curt Schilling says the company tried up until the very last minute to work out a deal to stay afloat.
But William Thomas told a U.S. bankruptcy trustee in Delaware on Tuesday that Rhode Island’s refusal to approve $5 million in tax credit advances in May was the straw that broke the back of 38 Studios LLC.
Thomas, president and chief operating officer of 38 Studios, said private investors were willing to put millions into the struggling company on condition that it get the tax credits.
Without the tax credits, and with reports questioning the company’s solvency, Thomas said potential investors backed away and 38 Studios had to file for bankruptcy liquidation last month.