38 Studios bankruptcy hearings begin

38 Studios headed to bankruptcy court today.

38 Studios went to Delaware's bankruptcy court this afternoon beginning the arduous process of salvaging what it can in the face of a $270 million debt.

The hearing marked the first opportunity since the studio filed for bankruptcy for creditors to question the company's executives. According to the Boston Globe, creditors and employees who have gone unpaid since May will likely receive nothing through the proceedings as the studio takes the first steps towards liquidation.

Founder Curt Schilling, who was not in attendance at the hearing, expects to lose much of the fortune earned during his baseball career in the collapse. The Providence Journal reports the studio is believed to have assets amounting to about $21.7 million, with affiliate 38 Studios Baltimore owning around $335,000 in assets.

Rhode Island, the company's largest loaner, is just one name on a reported 45-page long list of creditors according to the Providence Journal. State taxpayers must pay the $115.9 million the studio owes to the state to cover principal, fees, and interest on its initial $75 million loan from 2010.

38 Studios filed for bankruptcy on June 7th. A week later, the Rhode Island State Police sent the studio subpeonas, with Citizens Bank suing the company for $2.4 million the next day.

Catch up on our coverage of 38 studios here.

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