This is the first lawsuit attempting to make Schilling personally responsible for his company's failure to repay debts. The company, 38 Studios LLC, filed for Chapter 7 bankruptcy protection last week and reported $150 million of debt compared to $22 million of assets.
Via the Boston Globe, RBS Citizens claims Schilling is personally responsible for the loan since the company could not repay it.
RBS Citizens, owned by the Royal Bank of Scotland, said Schilling personally guaranteed the debt to the bank on October 26. But, RBS Citizens said, "Schilling has failed and refused" to pay it. "This is a straightforward matter of liability," RBS Citizens said in the lawsuit, filed last week.
Schilling, who founded 38 Studios six years ago and lives in Medfield, could not be reached for comment. A lawyer for RBS Citizens declined to comment.
For more Red Sox news, visit the SB Nation Blog Over the Monster.