Employees were not and have not yet been paid the 5/15 payroll. They continued to work through yesterday. As claimaints against 38 Studios that do have the right to obtain a limited amount for past due wages. However, it just seems shady that Schill put $4M in only to have it paid out of the state funds later on. You're right, I don't truly know his finances and my thoughts are purely conjecture.
It's sad for all involved. I know Schill was really relying on the next game "Copernicus" to make the company successfull. Too bad they couldn't make it that far.