Comments made by Rhode Island Governor Lincoln Chafee regarding 38 Studios ensured that investors steered clear of the troubled company, says owner Curt Schilling.

Calling Chafee’s statements regarding the developer “devastating”, Schilling claimed they “scared off private investors,” including one who was on board for a sequel to Kingdoms of Amalur: Reckoning.

That deal was worth AUD $35 million, he said, adding that he could personally end up losing AUD $51 million of his own money due to the failure of the studio.

Schilling confirmed that the money loaned to the developer by the Rhode Island government was all put towards Project Copernicus, as was rumoured yesterday.

He also claimed that state economic development officials reneged on a deal to approve film tax credits, which he said 38 Studios was legally entitled to.

The credits would have allowed his firm to defer the AUD $1.14 million payment due to the state on May 1, he said.

Following the payment default, 38 Studios laid off a total of 391 employees.