The Boston Globe reports that RBS Citizens, better known as Citizens Bank, says Schilling, who is an ESPN baseball analyst, personally guaranteed the debt to the bank but has "failed and refused" to pay it.
Schilling's 38 Studios filed for Chapter 7 bankruptcy protection last week. It laid off its entire workforce in May soon after it was late in making a $1.1 million payment to the Rhode Island Economic Development Corp.
Rhode Island's Department of Labor and Training on Thursday suspended its investigation into claims of unpaid wages at 38 Studios because the company filed for bankruptcy protection, spokeswoman Laura Hart said.
The company listed owing at least $2.5 million to employees in Rhode Island and Maryland in its bankruptcy filing.
38 Studios was lured from Massachusetts to Rhode Island in 2010 after receiving a $75 million loan guarantee from the state.
Messages were left Thursday with public relations companies representing Schilling.
Information from The Associated Press was used in this report.