38 Studios financial worries seem to be getting more desperate as the developer has reportedly missed its latest loan payment of $1.125 million.

The latest payment should have been made to the state of Rhode Island on May 1, and by missing it the studio has effectively defaulted on their $75 million loan. Rhode Island’s Economic Development Corporation has called an emergency meeting to discuss ”an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios financing.”

If the studio was to fully default on the loan it would cost Rhode Island taxpayers $112.6 million. Of the $75 million loan, $49.8 million has been paid to the studio so far. The studio is currently working on a Kingdoms of Amalur MMO which was originally set to release before 2013, it’s unclear what stage development is at and 38 Studios has yet to make an official statement regarding the issues.

Source: WPRI