Curt Schilling firm unable to cover $1.1m check, may miss payroll
More turmoil at Curt Schilling’s 38 Studios video-game company. Rhode Island officials disclosed this evening that the company attempted to pay a missed loan payment this evening, but had insufficient funds to cover the $1.12 million check. The firm has failed to pay its employees this week, state officials said.
Schilling’s firm, which received $75 million in loan guarantees from Rhode Island to move his company to Rhode Island, missed a $1.12 million payment due the state May 1, and on Wednesday asked state officials for more aid to help his ailing company.
38 Studios then attempted to make the missing payment Thursday evening, delivering a check for the amount to the offices of Rhode Island Economic Development Corp. at around 5 p.m.
However, the agency said it learned from 38 Studios’s chief financial officer that the company did not have sufficient funds to cover the payment, so the state returned the check to the company.
Schilling’s company relocated from Massachusetts in 2010 after Rhode Island offered a $75 million loan guarantee, which state officials said would means hundreds of jobs and millions of dollars in tax revenue. The company promised to bring 450 jobs to the city, and Rhode Island officials hoped it would anchor a new video game sector there.
Massachusetts officials tried to keep 38 Studios in Maynard, but declined to match the Rhode Island offer.
As worries over the company’s future mounted this week, Keith Stokes, Rhode Island’s Economic Development Corp.’s executive director, submitted his resignation to the state’s governor who accepted it Wednesday.
Stokes told The Associated Press on Thursday that he had been considering stepping aside for a while. He said he met with his staff Thursday morning to inform them of his decision.
As to whether 38 Studios played a role in his decision, Stokes quoted novelist William Faulkner, saying “all of us fail to match our dreams of perfection.”