(CNN) -- A Rhode Island-based video game company founded by former Major League Baseball pitcher Curt Schilling filed for bankruptcy on Thursday, according to court documents. The company, 38 Studios, filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court for the District of Delaware on Thursday. According to the filing, the company owes its creditors $150.7 million but only holds $21.7 million in assets. "This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available," the company said in a statement Thursday. "After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the company has been unable to find a solution to the current stalemate."
@highlight
38 Studios, founded in Massachusetts by ex-pitching ace Curt Schilling, files Chapter 7
@highlight
The videogame company owes creditors up to $500M, has assets of no more than $50M
@highlight
38 Studios relocated to Rhode Island in 2010 after getting $75 million in loan guarantees
@highlight
State and federal authorities, including FBI, are probing the company's transactions
@placeholder has the second-highest unemployment rate in the country, at 11.2%.