Last month’s bankruptcy filing by 38 Studios, the ill-fated video game company founded by former Boston Red Sox star Curt Schilling that benefited from a $75 million bond offering by Rhode Island’s economic development arm, has implications for several Am Law 200 firms.
Jeoffrey Burtch, a partner at Delaware’s
Cooch and Taylor
who is serving as the Chapter 7 trustee overseeing the liquidation of 38 Studios, filed papers with the bankruptcy court in Wilmington on Thursday seeking to have his firm serve as general counsel for the debtor and to have
named special counsel. Burtch wants to tap Cozen’s intellectual property and media expertise given that most of the 38 Studios’s $21.7 million in remaining assets are tied to the games it created.
The Cozen team seeking entry in the case is being led by Mark Felger, cochair of the firm’s bankruptcy, insolvency, and restructuring practice, and litigation partner Barry Klayman. Both lawyers plan to bill the bankrupt estate $640 an hour for their efforts,
according to court filings submitted by Cozen
. (Felger, who did not respond to a request for comment, and Klayman, are both alums of
, having joined Cozen from the now-defunct firm in 1997 and 2009, respectively.)
The company’s only secured creditor is Rhode Island’s Economic Development Corporation, which court records show is owed $115.9 million. The state agency lured 38 Studios to Providence in 2010 from its former home in Maynard, Massachusetts, by issuing $75 million in taxable bonds, the proceeds of which were distributed to the company when it hit certain benchmarks.
Laura Davis Jones, a name partner at national bankruptcy boutique
Pachulski Stang Ziehl & Jones
, is serving as lead counsel to the debtor.
Court filings by the firm show
that it received $36,224 from 38 Studios prior to its bankruptcy filing, and has agreed to accept another $35,000 for legal services during the Chapter 7 case. Davis, who did not return a request for comment, is leading a team from the firm that includes Pachulski Stang partners David Bertenthal and Curtis Hehn.
Another firm with ties to 38 Studios,
publicly congratulated the company on the release
Kingdoms of Amalur
in February. The firm noted that it had represented 38 Studios since 2007, a year after it was founded by Schilling, a six-time All-Star and former World Series MVP. Not surprisingly, Foley Hoag appears on a list of 38 Studios’s largest unsecured creditors, and is listed as being owed $189,916.
Also owed money by 38 Studios are Weissmann Wolff ($35,935), Chicago IP shop
Pattishall, McAuliffe, Newbury, Hilliard & Geraldson
($4,334). Edwards Wildman,
also appear on a creditors matrix for 38 Studios, as do smaller firms like Moses & Afonso, Boston-based boutique
Shilepsky Hartley Robb Casey Michon
, and Boston bankruptcy solo practitioner
. The company’s largest unsecured creditor is Providence lawyer
, founder and principal of the Preservation Credit Fund, which is owed $11.5 million through Corso’s
reported use of film tax credits to obtain an $8.5 million loan
for the debtor.