A local Rhode Island NBC station reported on Monday night that Curt Schilling’s 38 Studios is now facing insolvency issues, just three months after the release of their first major title Kingdoms of Amalur: Reckoning.
Back in 2010, 38 Studios moved to Providence from Massachusetts after Rhode Island offered the company a $75 million loan with the hope of bringing 450 employees and tax revenue to the state. WPRI reports that the studio has received $50 million and currently has 288 employees.
Rhode Island Governor Lincoln Chafee has been in talks this past weekend with company executives regarding the future of 38 Studios.
“We’re concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community,” Governor Chafee told WPRI on Monday night. “We’re working on different issues with them.”
The massive taxpayer-backed loan is actually funding the studio’s “Project Copernicus,” a massively multiplayer online game that is supposed to be released this September. 38 Studios has not announced plans to showcase the game at E3, nor has it planned any booth for the show.
If the former Red Sox pitcher can’t find a way to pay off his studio’s loan, Rhode Island taxpayers could be forced to pay up to $112.6 million through 2020 after interest payments, according to bond documents reviewed by WPRI.