FILE- In this May 21, 2012, file photo, former Boston Red Sox pitcher Curt Schilling, center, is followed by members of the media as he departs the Rhode Island Economic Development Corporation headquarters in Providence, R.I. Schilling has dabbled in politics, World War II history and raised millions for Lou Gehrig's disease, but it's a gamble on his video game company 38 studios that is in danger of failing and possibly leaving Rhode Island taxpayers with the tab on a $75 million loan guarantee that lured the firm from Massachusetts in 2010. (AP Photo/Steven Senne, File)

No EDC bailout for 38 Studios, layoffs begin

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Posted: 5/21/2012 10:15:26 PM
Updated: 5/22/2012 4:41:52 PM

Governor Lincoln Chafee says 38 Studios has begin a mix of layoffs and payless paydays, the revelation coming after former Red Sox player Curt Schilling met again with the Rhode Island Economic Development Corporation board, trying to save his ailing video game company.

Schilling and executives from his company met Monday night with the board of the EDC for the better part of three hours.  He left, muscling past about 20 reporters.

"There is so much misinformation out there that I cannot begin to clear it up with, with a soundbite.  So, when I can speak directly and clearly and be heard, then I'll have my piece, alright?" said Schilling.

Asked about the viability of his company, Schilling said, "We're not asking for more taxpayer money."

Gov. Chafee concluded the board meeting indicating there was no action, but said, "I know the taxpayers want more answers.  They'll get them over time.  All I can promise is we're working hard to protect every penny of the investment that was made."

He said he wanted to maintain the confidentiality of the talks with Schilling, but said the company executives indicated there were layoffs and payless paydays. 

"I believe it was a mix of who's made payroll and a number of layoffs," Chafee said.

The company on May 1 failed to made a $1.125 million payments to maintain its $75 million loan guarantee, and when it presented a check to the EDC last week, the quasi-public agency refused to accept it when told there were insufficient funds.  The payment was eventually made.

Chafee said no further date for a meeting was scheduled, and he did not indicate what further action was anticipated.  However, asked about what could resolve the apparent financial standoff, Chafee indicated, "well, it'd be great if there was some deep-pocket investor that wanted to come in to the situation."

Steve Klamkin | WPRO News

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Steve Klamkin | WPRO News