38 Studios has successfully paid the $1.125 million it owed in a loan repayment earlier this month.
The financial crisis at the company turned into a public debacle when Rhode Island taxpayers learned they'd be making up the funds in taxes clear through 2020.
Today local news group WPRI reported that 38 Studios has cleared a check for the overdue amount. Governor Chafee also announced that the company will no longer be awarded further tax credits and must turn to private investors for additional aid.
"I'll do anything under the law to protect the taxpayer and also not break the law," Chafee said. "My goal is to protect the taxpayer now … We're in deep."
The state of Rhode Island is already suffering from an unemployment rate of 11.2%, the country's second-highest ranking after Nevada.
Curt Schilling's studio operates at over $4 million a month and recently missed payroll for its 379 full-time employees.
The studio's next payment of $2.6 million is due on on November 1 of this year. Schilling believes they can make the payment and released a hopeful statement through Facebook: "To all the prayers and well wishes to the team and families at 38, God Bless and thank you! We will find a way, and the strength, to endure."
38 Studio's upcoming MMO, Copernicus, is scheduled to release in June 2013.
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