38 Studios missed $1m loan payment

The Rhode Island State House is scrambling to determine the extent of 38 Studios’s financial woes after the company missed a loan payment in excess of a million dollars.

The studio, founded by baseball star Curt Schilling, came to Rhode Island after being offered a $75 million dollar loan.

38 Studios’ first game, Kingoms of Amalur, met with good sales and positive reviews, but profits may not have been good enough to keep the company in fiscal health.

Rumors surfaced this week that the company might be in trouble, and the state-guaranteed loan could cost taxpayers up to $112 million.

News of the $1.125 million default has been confirmed by state house speaker Gordon Fox, reported WPIR.

The Rhode Island ecomonic develpment corporation has called an emergency meeting to discuss "an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios, LCC financing."

Fox said the company was "trying to work through that", and had not asked for any state funding, but may seek to bolster its finances by using tax credits.

EDC director Keith Stokes briefed Fox about the situation on tuesday, but the speaker was unwilling to provide any details of the board’s plan.

"You’d have to ask them," said Fox. "I don’t want to give you any more details on that because I’ll mess them up."