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38 Studios missed a $1 million loan repayment

Wednesday, 16th May 2012 01:28 GMT By Brenna Hillier

More details have surfaced regarding the financial woes of Kingdoms of Amalur: Reckoning developer 38 Studios, currently in debt to the state of Rhode Island.

WPRI reports Rhode Island House speaker Gordon Fox confirmed the developer defaulted on a May 1 repayment of $1.125 million.

The developer is said to be suffering a cash-flow shortfall and is seeking bridge funding despite exploiting tax credits. It has not applied to the state government for funding to resolve its problems, presumably because the state loaned it the $75 million it’s struggling to repay.

The state’s Economic Development Corporation has scheduled an emergency meeting to try and sort out the struggling company, and probably ask some hard questions about how the developer spent the $49.8 million in cash it drew on.

Nevertheless, the house speaker said he doesn’t regret helping push through the loan program which attracted the developer, previously headquartered in Massacusetts, noting that studio head Curt Schilling knows what he’s doing.

“He seems to have a lot of people around him that seem to know what they’re doing and from what I’ve been seeing, they’re a great company that’s good for Rhode Island,” Fox said.

38 Studios employs 379 full time staff plus contractors and interns. It is currently working on an MMO in the Amalur setting, code named Copernicus.

Thanks, Joystiq.

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2 Comments

  1. ejams

    I sure hope these guys pull through, I’ve only played the demo for KoA but it’s really fun and I’m curious to see how their future endeavors will go. I doubt an MMO is the way though, Amalur may have been a pretty good game in itself, but making it in to yet another MMO will get them destroyed. Even Star Wars is struggling, and it had the advantage of an extremely wide-known brand.

    #1 3 years ago
  2. Sini

    “Seems to know what they’re doing” gives you a 75 million loan nowadays?

    #2 3 years ago

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