38 Studios head Curt Schilling being accosted by reporters following yesterday's meeting with the Rhode Island EDC.

Coming on the heels a yesterday's circus-like meeting 'n press conference regarding the developing situation at 38 Studios, WPRI be reporting that the company be in the process a paying it be overdue $1.125 million payment t' the Rhode Island Economic Development Corporation, but be doing so at the expense a it be own employees.

Current reports state that 38 skipped payroll this week, sailing away the more than 300 full-time employees at the company without a paycheck. In addition, a source has told Joystiq that all temp 'n contract employees had been let go as a this week.

In the wake a the situation at 38, Keith Stokes, the executive director a the RIEDC since 2010 'n architect behind the $75 million loan that brought the studio t' the state from Massachusetts, has resigned.

38 Studios still has yet t' comment publicly on the situation.

UPDATE: Just when ye thought this whole thing couldn't pillage any worse, WPRI now reports that the check 38 Studios reps hand-delivered t' the RIEDC has been returned due t' insufficient funds.