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Kingdoms of Amalur developer asks state for bailout

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Kingdoms of Amalur: Reckoning
Kingdoms of Amalur: Reckoning

38 Studios seeks financial aid from Rhode Island after defaulting on loan payment.

38 Studios founder Curt Schilling went before state officials today, baseball hat in hand, to ask for additional help from Rhode Island's Economic Development Corporation after the developer defaulted on a promised payment earlier this month.

The studio behind action RPG Kingdoms of Amalur: Reckoning and an upcoming massively multiplayer online game dubbed Project Copernicus failed to make a $1.125 million payment to the state on May 1. That "annual guarantee fee" is part of an agreement tied to a $75 million loan guarantee from the state and is calculated yearly as 1.5% of the "average outstanding amount."

"Please note that 38 Studios was not in default of any payments of principal or interest on the bond," reads a fact sheet from the EDC board.

Schilling and 38 Studios reps met with Rhode Island governor Lincoln Chafee and EDC board members in "emergency" behind-closed-doors meetings today, according to a report from WPRI. The particulars of those discussions were not disclosed, but no decisions were made by the state on Schilling's requests for further financial assistance. The board is expected to meet again on Monday.

38 Studios has been "ducking the media," according to WPRI's televised report, offering no insight into the financial health of the fledgling developer.

"My priority right now is to get back to my team," Schilling was quoted as saying after the meeting.

Gov. Chafee told reporters that the state is doing "everything possible" to preserve the viability of the company.

While the EDC board said in a statement forwarded to Polygon that it would "continue to talk with 38 Studios and develop additional information," Gov. Chafee questioned "How do we avoid throwing good money after bad?"

Rhode Island EDC reps tell Polygon that the meeting was a confidential closed session and that a transcript of the hearing would not be made publicly available. We've reached out to 38 Studios again seeking comment on the status of the company.