According to Curt Schilling, he stands to lose $50 million if 38 Studios goes under. The company received a $75 million loan from the state of Rhode Island two years ago, and if it goes bankrupt then Rhode Island taxpayers will be liable to repay more than $100 million.
Schilling also said that Gov. Lincoln Chafee’s remarks that the state was trying to keep his company solvent were ‘‘devastating.’’ Within 72 hours of those comments, a video-game publisher (likely Electronic Arts) pulled out of a $35-million deal to finance Kingdoms of Amalur: Reckoning 2.
‘‘The governor is not operating in the best interest of the company by any stretch, or the taxpayers, or the state,’’ said Schilling. ‘‘We’re trying to save this company and we’re working 24/7. The public commentary has been as big a piece of what’s happening to us as anything out there.’’
Furthermore, Schilling also said the state did not deliver promised film tax credits for 38 Studios and refused to allow the company to defer a $1.1 million payment to the Economic Development Corp. This forced the company to miss payroll on May 15. Soon afterward, 38 Studios was forced to lay off its 291 workers in Providence and 100 more in Maryland.
‘‘I have done whatever I can do to create jobs and create a successful business, with my own income,’’ he said. ‘‘Fifty million dollars, everything I’ve ever saved, has been put back into the economy. The $49 million from Rhode Island has been put back in the economy. I’ve never taken a penny and I’ve done nothing but create jobs and create economy. And so how does that translate into welfare baby I’ve tried to do right by people.’’
Chafee, for his part, denies that he’s hurt the company with his comments. While he claims he wants 38 Studios to succeed, he opposes giving them film tax credits after receiving state bond proceeds.
Jonathan Savage, a business lawyer who is representing Chafee, says that the state may change its first position to 38 Studio’s assets if that will help attract a private investor. Schilling says that might help and wants to believe the company isn’t finished.
‘‘I pray that it’s not,’’ he said. ‘‘We’re doing everything we can do to make that not be the case.’’