Rhode Island governor Lincoln Chafee announced that 38 Studios has successfully paid its $1.125 million towards its loan to the state.
“It’s time for them to go out and get private capital funding,” Chafee said. “That’s the deal. It’s a generous deal, but stick to it.”
Officials believe that the $49 million loaned to the company has been spent already.
The studio will have to pay $2.6 million as a debt service payment on Nov. 1, which officials believe the studio will be able to cover by then.
After that, 38 Studios will own $12.6 million in 2013.
“I said from the beginning that it was a risky enterprise,” Chafee said.
Chafee added that the state won’t be taking another risk like this again.
“Never, never ever. Not under my watch,” he said.