Schilling's company makes $1.1M payment to RI
May 18, 2012 at 9:00 AM May 18, 2012 at 3:31 PM
Former Red Sox pitcher Curt Schilling's video game company has made a $1.1 million payment to the state and now should seek out private financing to stay afloat, Rhode Island Gov. Lincoln Chafee said Friday.
"There's no more easy money," Chafee said at a press conference.
The company, 38 Studios, missed a scheduled payment to the Rhode Island Economic Development Corp. on May 1 and has told the state it could not meet its payroll this week, prompting worries about its solvency and whether the state would have to step in to pay its debts.
38 Studios hand-delivered a check to the economic agency on Thursday only to have the chief financial officer acknowledge soon after there wasn't enough money in the account to cover it.
The $1.1 million payment was made on Friday and the check cleared, Chafee said.
38 Studios was lured from Massachusetts in 2010 after Rhode Island officials offered a $75 million loan guarantee. The money was raised through a bond sale and distributed by the Rhode Island Economic Development Corp as the company met financial and other milestones.
As of November, the company had received nearly $50 million, according to the state. Chafee's Director of Revenue Rosemary Booth Gallogly said the company has indicated that money has been spent.
Schilling has asked for additional help from the state.
Chafee opposed the loan guarantee as a candidate for governor. He said the company has told him that private capital has not materialized.
Messages were left for Schilling and a 38 Studios spokesman.
Schilling thanked well-wishers in a Facebook post late Thursday, writing: "To all the prayers and well wishes to the team and families at 38, God Bless and thank you! We will find a way, and the strength, to endure."