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38 Studios Failed To Make Payment, Needs Help

by Jim Reilly on May 16, 2012 at 11:58 AM

More information has become available since reports surfaced earlier this week suggesting developer 38 Studios was in financial trouble.

This morning, it was revealed 38 Studios defaulted on May 1 when it did not make a required $1.125 million payment to the R.I. Economic Development Corporation, according to 38 Studios owner Curt Schilling met with Gov. Lincoln Chafee and the EDC in an emergency meeting for two hours where Schilling asked for additional state assistance. No decision was made at the outcome of the meeting. They'll meet again on Monday.

"The difficulty that we face is protecting the taxpayers and looking ahead to the future (to determine) whether there's viability that's worth further investment," Chafee said. Schilling did not comment on the meeting, only saying, "My priority right now is to get back to my team." He said he'll issue a statement soon.

In 2010, the EDC gave 38 Studios $75 million in taxpayer money to move the studio from Boston to Providence.

[Source: AP, WRPI]