Delaware trustee tours 38 Studios

PROVIDENCE, R.I. (WPRI) - The trustee assigned to handle the 38 Studios bankruptcy case flew up from Delaware this week to take inventory of what's left at the company's empty Providence headquarters.

Jeoffrey Burtch declined a request for an interview, but was seen walking into the downtown headquarters Wednesday afternoon after meeting with lawyers representing Rhode Island in the case.

Burtch first toured the hollow halls of 38 Studios on Tuesday, when he flew into Rhode Island. He returned to the company the following day going floor by floor examining the physical assets of the firm, Target 12 has learned.

At a press conference Tuesday Jonathan Savage, the attorney representing the Rhode Island Economic Development Corporation in the bankruptcy case, said they will be announcing their plan to recoup as much money as they can within the next two weeks.

"We do have a strategy and we are going to share that with the bankruptcy trustee [Wednesday]," Savage said.

A trustee is assigned by a federal bankruptcy judge to assess what is left of a bankrupt company’s assets and decide which creditors get paid and how much. U.S. Bankruptcy Court Judge Mary Walrath ultimately has to sign off on the trustee's recommendations.

Curt Schilling's defunct company owes about 1,000 creditors more than $150 million; the lion's share to Rhode Island.

In 2010 the EDC, under former Governor Don Carcieri, authorized a $75 million taxpayer backed loan to lure the company from Massachusetts to Rhode Island.

The company filed for bankruptcy last month and laid off roughly 300 workers.

A hearing is scheduled for July 10 at bankruptcy court in Delaware where 38 Studios was incorporated. It is an opportunity for creditors to ask questions of the company.

Thomas Carlotto – who works with Savage – confirmed for WPRI 12 that he will be attending the hearing but declined to spell out what kind of questions he planned on asking.

A representative from the company must be present at the hearing. Carlotto said he didn't know who that would be but speculated it could be Rick Wester, the company's chief financial officer.

Tim White ( twhite@wpri.com ) is the Target 12 investigative reporter for WPRI 12 and Fox Providence. Follow him on Twitter: @white_tim