38 Studios met today with Rhode Island Economic Development Corporation to discuss its current financial situation, which at the moment isn’t looking so good. During the meeting, studio founder Curt Schilling asked the state for more money, even after his studio defaulted its latest loan payment this month, leaving many to wonder what will end up happening to the Providence-based company.
Attorney and Game of the Law Editor Mark Methenitis told Joystiq that based on documentation and information he has reviewed, the state’s $75 million loan was secured by studio assets including all of 38 Studios’ intellectual property. This includes rights to Kingdoms of Amalur and any other unannounced games currently being worked on.
“What that means, in brief, is if they default on their obligations to the RIEDC, then the RIEDC can turn around and take possession of as much of that as is necessary to pay off the debts owed, Methenitis told Joystiq.
Remember that Rhode Island taxpayers may end up paying upwards of $112.6 million to pay up the studio’s loan. The state could bring in more money by auctioning off rights to Kingdoms of Amalur to the highest bidder, though it’s not likely anyone will want to pay $100 million for a relatively new IP that has only seen one game so far.