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Schilling’s Company Gives Bad Check For Past-Due Loan Payment

By Erika Niedowski, Associated Press
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Curt Schilling. (Photo by Taylor Hill/Getty Images)

Curt Schilling. (Photo by Taylor Hill/Getty Images)

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PROVIDENCE, R.I. (CBS/AP) — Former Red Sox pitcher Curt Schilling’s troubled video game company failed to pay its employees on Thursday and sent a bad check for a $1.125 million loan payment to the state, according to WPRI-TV.

“A check from 38 Studios was hand-delivered to the Rhode Island Economic Development Corporation at approximately 5 o’clock this evening. However, upon learning from the Chief Financial Officer of 38 Studios that there were insufficient funds to cover the payment, the check was returned. The EDC remains willing to accept readily available funds,” said Gov. Lincoln Chafee, in a statement.

Gov. Chafee said Schilling’s 38 Studios is paying the Rhode Island Economic Development Corp. the money that was due May 1.

The company relocated from Massachusetts in 2010 after Rhode Island offered a $75 million loan guarantee that state officials said would means hundreds of jobs and millions in tax revenue.

38 Studios on Wednesday asked the economic agency for additional assistance after missing the payment. The agency’s board had not acted on that request.

The economic agency’s head resigned Wednesday. A statement from Gov. Lincoln Chafee’s office says Keith Stokes resigned Wednesday as executive director of the Economic Development Corp.

Stokes called the loan guarantee for Schilling a calculated risk well worth taking.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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