Schilling's 38 Studios company was unable to make a loan payment to the state on Thursday after having "insufficient funds" to cover the $1.12 million due, according to the Boston Globe.
The firm received a $75 million loan from Rhode Island's Economic Development Corporation in exchange for moving from its Massachusetts home to a new one in the Ocean State. 38 Studios apparently planned on making the loan payment earlier this week, but had the check returned after discovering that the company did not have enough money to cover the entire total.
State officials also noted that Schilling's company missed payroll this week.
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