38 Studios has successfully made a $1.125m payment to the state of Rhode Island.
Governor Lincoln Chafee announced that the million dollar check to Rhode Island cleared late last week, meeting the amount required on the loan from the Rhode Island Economic Development Corporation.
The state is changing its legislation on tax breaks, closing loopholes regarding state funds being used for motion-picture endeavors, Chafee explained. Given the situation, the state’s interest lies in both protecting the taxpayers and keeping 38 Studios solvent.
"Taxpayers have had a very generous deal for 38 studios" Chafee said. "It’s time for [the studio] to go out and get private capital funding. That’s the deal. It’s a generous deal, but stick to it."
38 Studios’ next payment is a debt service payment of $2.6m due on November 1st, and state officials believe the studio will have the capital to cover it. The studio will then owe $12.6 million in full annual debt service in 2013, which as officials describe is ‘on their dime.’
In related news, Chafee spoke at a press conference relating to 38 Studios and revealed that the developer’s in the works MMO known as Project Copernicus is slated to release in June of 2013.