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“We were asked to continue making mortgage payments even though they had not paid invoices for a few months,” he said.

MoveTrek believed 38 Studios was owed money from the state, including millions in tax credits it had been seeking.

Mohns said his firm is no longer making the mortgage payments, and that some of 38 Studios‘ former employees have assumed double payments on homes in Rhode Island and Massachusetts.

He said there were offers on “two or three” of the properties but that 38 Studios could not pay the real estate commissions and fees; his firm is now trying to salvage some of those sales, he said.

In total, the outstanding amount owed on the mortgages is $1.94 million, while the estimated sales price of the properties is $1.77 million, according to the bankruptcy filings. With commission and fees, 38 Studios estimates its liability to be around $304,000.

38 Studios said in the filings it doesn’t own any of the properties but has “certain contractual obligations” to purchase them under the relocation agreement. The filings note that MoveTrek has cited “potential credit and title issues for the participating employees.”

MoveTrek is itself owed $223,000, including for mortgage payments already made and the work of suppliers it contracts with to manage the properties.

One former 38 Studios employee listed as having an outstanding mortgage balance on a property in Maynard, Mass., of $508,000 _ and whose home is expected to sell for $415,000 _ declined to comment.

An employee whose mortgage balance on a Marlborough, Mass., property is listed as being $261,000 _ with an expected sales price of $140,000 _ also declined to comment.

Some employees were given a relocation stipend, and arranged moving services on their own. Others used Atlas Van Lines, which was to be paid by 38 Studios.

Atlas is owed more than $116,000, according to the filings, and the moving company has been contacting employees by letter demanding payment.


Associated Press writer David Klepper contributed to this report.