Business

Schilling’s firm lacks funds to make loan payment to R.I.

Rhode Island officials disclosed this evening that Curt Schilling’s 38 Studios video-game company attempted to pay a missed loan payment, but had insufficient funds to cover the $1.12 million check.

The firm has also failed to pay its employees this week, state officials said.

Schilling’s firm, which received $75 million in loan guarantees from Rhode Island to move his company from Massachusetts in 2010, missed a $1.12 million payment due the state May 1, and on Wednesday asked state officials for more aid to help his ailing company.

Advertisement

38 Studios then attempted to make the missing payment Thursday evening, delivering a check for the amount to the offices of Rhode Island Economic Development Corp. at around 5 pm.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

However, the agency said it learned from 38 Studios’s chief financial officer that the company did not have sufficient funds to cover the payment, so the state returned the check to the company.

The agency ‘‘remains willing to accept readily available funds,’’ according to a statement from Rhode Island Gov. Lincoln Chafee.

Keith Stokes, executive director of the Rhode Island Economic Development Corporation, resigned in the middle of controversy over the $75 million loan guarantee.

Chafee released a statement Thursday accepting Stokes’ resignation.

Advertisement

“I thank Keith for his service to Rhode Island,” the statement read, “and I am confident that he will continue to be very involved in the state he loves.”

Stokes was originally appointed as executive director by former Governor Donald Carcieri, who favored the deal with Schilling’s company.

According to Associated Press, Chafee has asked Colin Kane, a real estate developer, to replace Stokes on an interim basis. Kane is chairman of a commission that is overseeing redevelopment of a parcel in downtown Providence.

On Wednesday, the board of the economic development agency took no action regarding 38 Studios. It will meet again Monday.

Information from the Associated Press was used in this report.