Former Red Sox pitcher Curt Schilling's video game company has made an overdue $1.1 million payment to the state and now should seek out private financing to stay afloat, Rhode Island Gov. Lincoln Chafee said Friday.
"There's no more easy money," Chafee said at a Statehouse news conference.
The company, 38 Studios, missed a scheduled payment to the Rhode Island Economic Development Corp. on May 1 and has told the state it could not meet its payroll this week, prompting worries about its solvency and whether the state would have to step in to pay its debts.
38 Studios hand-delivered a check to the economic agency on Thursday only to have the chief financial officer acknowledge soon after there wasn't enough money in the account to cover it.
The $1.1 million payment was made on Friday and the check cleared, Chafee said.
The company was lured from Massachusetts in 2010 after Rhode Island officials offered a $75 million loan guarantee. The money was raised through a bond sale and distributed by the Rhode Island Economic Development Corp. as the company met financial and other milestones.
As of November, the company had received nearly $50 million, according to the state. Rhode Island Revenue Director Rosemary Booth Gallogly said Thursday the firm has indicated that all of that money has been spent. The state is performing its own audit, she said.