Last week, the studio failed to pay its employees and a $1.125 million instalment on a $75 million Rhode Island state-backed loan. If the company defaults on the loan, it's feared that Rhode Island tax payers could foot the $112 million bill.
"There’s so much misinformation out there I cannot begin to clear it up with a sound bite," said founder Curt Schilling following a meeting with Rhode Island governor Lincoln Chafee and state economic officials. “We’re not asking the taxpayers for more money.”
The studio has since paid the loan instalment, and managed to pay a number of employees, but couldn't cover all of its costs. No details have been given regarding how many employees have been let go, or which roles were affected.
“We’re working through all this," Chafee said. "It’s a company in a difficult, complex and competitive market. I know taxpayers want to know more. They’ll get their answers over time.”
Another meeting with the state's economic development corporation will be scheduled in order to discuss the future of the studio.
“I want 38 Studios to be successful, as I’m sure every Rhode Islander does,” Chafee added. “We’re into it for tens of millions of dollars.”