More details — none of them good — have emerged regarding 38 Studios‘ meeting with Rhode Island Governor Lincoln Chafee earlier this week, including a video of Chaffee’s comments to reporters after the meeting.
38 Studios failed to make a repayment of $1.125 million on its $75 million loan from the state on May 1, prompting the visit from Chafee, who posed the question to reporters: “How do we avoid throwing good money after bad?”
If the company becomes insolvent, the state of Rhode Island would actually gain the rights to the Amalur franchise and all associated IPs, as reported by Joystiq.
The state would likely sell the assets to another development company, in the hopes of recouping some of the loan. But the total amount paid would probably not cover the entire value of the loan, which, with interest, would amount to over $100 million.
Mobbed by reporters, Curt Schilling declined to speak, saying only that he would make a statement in the future. Schilling made $114 million as a Major League Baseball pitcher, according to Baseball Reference.
What do you think? Will 38 Studios pull out? Or is it just going to get worse from here? Let us know in the comments below?
UPDATE: 38 Studios is apparently paying off its loan to the state by not paying its employees. Oof.