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38 Studios gives bad check to pay for Rhode Island state loan [Update]

The news keeps getting worse for game developer 38 Studios. The company, which has been working for some time on its fantasy MMO game, known only by its code name "Project Copernicus", actually gave the state of Rhode Island a bad check to pay for its overdue loan. A report from the WPRI.com site says that 38 Studios hand delivered this check for its required $1.125 million loan payment earlier this week, which was actually due on May 1.

Unfortunately, 38 Studios later told the Rhode Island government that the company didn't have sufficient funds to cover this check, so the state returned it. In addition, it's been confirmed that 38 Studios missed its payroll this week for its hundreds of employees. Joystiq also reports that all of the developer's contractors and temporary workers have now been laid off.

Earlier this week, 38 Studios founder, and former Boston Red Sox pitcher, Curt Schilling, asked the Rhode Island Economic Development Corporation to assist the game developer in some way. In 2010, 38 Studios received $75 million in loans from the state. Schilling said he and 38 Studios would use the money to hire 450 people in their Rhode Island offices to work on "Project Copernicus." So far, the developer has revealed little information on the game.

Update - WPRI.com reports that 38 Studios has now officially paid the $1.125 loan payment to the state of Rhode Island. It adds that Project Copernicus is now slated for release in June of 2013.

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