38 Studios, the studio that brought us Kingdoms of Amalur, is in a serious financial mess. The company, which is owned by former Red Sox legend Curt Schilling and employs comic book artist Todd McFarlane as its Art Director, failed to make a $1.1 million loan payment.

The company is talking with officials in Rhode Island, including the Governor, to develop an action plan to get them out of the red. (Rhode Island gave Schilling a $75 million loan back in the summer of 2010 to relocate the company from Massachusetts.)

This doesn’t bode well for 38′s plans for an Amalur MMO.