Tuesday, July 28, 2015

Ex-Phillie's firm defaulted on $75M state loan - UPDATE

Curt Schilling's 38 Studios computer-game firm owes Rhode Island a pile of cash

Ex-Phillie's firm defaulted on $75M state loan - UPDATE

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(Chris Gardner/AP)
(Chris Gardner/AP)

UPDATE: Rhode Island Gov. Lincoln Chaffee says ex-Phillie Curt Schilling's computer-games company has belatedly paid $1.1 million it owes the state as interest on a $75 million loan.

The check cleared today; it was 38 Studios' second attempt this week to make the defaulted loan current; the first check was withdrawn after the company treasurer warned it would bounce.

But Gov. Chaffee (an independent whose Republican predecessor made the loan) says he's still refusing Schilling's request for more money. Get it from the private sector, he told the ex-star and sometime Fox News guest.. AP story here.

EARLIER: Two years ago Curt Schilling, the star Major League Baseball pitcher who spent more years with the 1990s Phillies than anywhere else, sweet-talked Rhode Island's Republican Gov. Donald Carcieri into lending $75 million to Schilling's nascent computer-games development firm, 38 Studios (named for Schilling's Phillies-Diamondbacks-Red Sox number), after venture capitalists turned him down. In return, Schilling promised to move the firm to Rhode Island from the Boston area, and start paying the money back this year.

38 isn't failing -- its Kingdoms of Amalur: Reckoning has sold something like $60 million as work progresses on the firm's main multiplayer concept, Copernicus -- but it's not enough.

38 missed its May 1 loan payment, Schilling is demanding more cash, and Carcieri's fellow Republicans are mad the state ever got involved, the Boston Globe's Mike Arsenault and Todd Wallack report here. 

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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