It’s official: Kingdoms of Amalur publisher 38 Studios has declared bankruptcy.

Furthermore, Rhode Island's State Police, the FBI, the U.S. Attorney's office, and Rhode Island attorney general Peter Kilmartin are working together to investigate the publisher, specifically the conditions around the government loan that brought the company to the area.

These announcements came after the beleaguered studio failed to secure financing to continue development on its MMO, Copernicus.

According to bankruptcy court filing details, 38 Studios owes USD$150.7 million (NZD$193.9 million) and has USD$21.7 million (NZD$27.9 million) of assets.

Its Big Huge Games subsidiary has also filed for bankruptcy, owing more than USD$121.4 million (NZD$156.2 million) and claiming over USD$335,000 in assets (NZD$430,780).

"This action comes after several weeks when the company has reviewed, considered, and received the recommendations and advice with respect to potential avenues for relief that are currently available," said a statement from the studio.

"After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."

The studio fired over 300 staff last month after it was unable to pay a loan installment back to the state of Rhode Island.