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38 Studios Meets With Rhode Island Governor, Asks for More Money [UPDATED]

Closed-door meetings today result in little forward progress.

Requisite picture of person mentioned in news story looking concerned/sad/upset.
Requisite picture of person mentioned in news story looking concerned/sad/upset.

Since it became clear earlier this week that not all was well in the land of game development studios run by former Red Sox Pitchers based in the state of Rhode Island, little concrete information has developed on what, precisely, started the chain of events that led to a closed-door meeting between studio head Curt Schilling and Rhode Island governor Lincoln Chafee today. All we do know is that 38 Studios reportedly missed a $1.125 million payment for its $75 million loan guarantee from the state, which led to curious quotes from the governor regarding providing help to keep the company "solvent," and absolute silence from anyone at 38.

Today's meeting between reps from 38 Studios and the state government evidently did little to enlighten the subject. Following the three hour meeting today, it was only revealed that Schilling had asked the state for additional assistance. No immediate action was taken by the state's Economic Development Corporation regarding the request.

Governor Chafee is quoted as commenting "How do we avoid throwing good money after bad?" following the conclusion of the meeting. He was also said to have remarked that he has no idea if 38 Studios' current project, the thus-far-unrevealed "Project Copernicus", was on schedule or not.

The full statement from the Rhode Island EDC can be read below.

The RIEDC Board of Directors met in closed session to receive a presentation from representatives of 38 Studios as to the company's confidential financial status and projections. Members of the Board asked many probing questions of the company. After representatives from 38 Studios concluded their presentation, the Board then engaged in extended discussion of confidential financial information. The Board did not take any vote. The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due. In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today.

UPDATE: I've added a video of the press conference that followed the event, posted by the Providence Journal. It's...pretty brutal.

Alex Navarro on Google+