38 Studios be unable t' make payroll this week, but be in the process a making the $1.125 million payment that set off the company's crisis earlier this week. WPRI reports that a spokesperson for the Rhode Island Economic Development Corporation (RIEDC) did confirm that former Red Sox player Curt Schilling's video game company be unable t' pay it be employees.

A source tells Joystiq that beyond not making payroll, all temps 'n contractors at 38 Studios be let go this week.

At the same time, Governor Lincoln Chafee's office stated 38 Studios be in the process a making the overdue payment t' the state. The head a the RIEDC, Keith Stokes, who approved the $75 million loan t' 38 Studios in 2010, resigned late last night.

If 38 Studios does close, Rhode Island taxpayers will have t' repay the $75 million bond (plus interest) through 2020, but they'll own the intellectual property a the developer, which would likely be sold at auction.

If the company does make the payment t' the state, the next round will be owed in 2013. a course, there won't be a 38 Studios much longer if it isn't paying employees.

Update: The hand-delivered check for the overdue $1.125 million payment has been returned by the EDC t' 38 Studios after the company's chief financial officer said there be insufficient funds t' cover it.