38 Studios - Payment bounces, can't make payroll

Things look dire at 38 Studios with WPRI.com reporting a payment cheque for their overdue $1.125M payment was hand delivered - but it subsequently bounced due to a lack of funds. According to a spokesperson for the Rhode Island Economic Development Corporation, the company also failed to make payroll:

Curt Schilling's taxpayer-backed video game company was unable to make payroll this week, Judy Chong, a spokeswoman for the R.I. Economic Development Corporation, confirmed Thursday in response to an inquiry from WPRI.com.

Separately, Governor Chafee's office said 38 Studios hand-delivered a check for the overdue $1.125 million payment to the EDC that set off this week's crisis. But shortly thereafter Rick Wester, its chief financial officer, called the agency and said there were insufficient funds to cover the check, so the EDC returned it.

Thanks, cptbarkey.