New RI Governor Vows to Keep an Eye on 38 Studios

November 9, 2010 -

Curt Schilling’s 38 Studios has received an initial payment of $13 million from the Rhode Island Economic Development Corporation (EDC) as part of a $75 million bond deal put together to lure the developer from Massachusetts to the Ocean State.

38 Studios is slated to receive approximately $51 million in all, with $20 million held in reserve in order to guarantee three years worth of repayments on the debt. Schilling’s firm will receive the rest of the money over the next 15 months as it meets certain milestones.

Rhode Island’s governor-elect, and opponent of the 38 Studios deal, Lincoln Chafee (pictured) stated that he was disappointed over the closing of the loan, as he would have liked to “formally contribute to the process.” He wished 38 Studios success while vowing to do everything in his power “to protect the interests of the taxpayers of our state.”

Chafee also promised to keep watch over the EDC and 38 Studios, saying, “I will, however, ensure that 38 Studios fully and completely comply with each and every commitment that it has made to the taxpayers of Rhode Island.”

A Providence Journal story features details on the fund raising used to fuel the 38 Studios deal, which will be generated by a bond sale. Moody’s gave the bonds in question an A2 rating, “three notches below the Aa2 rating on Rhode Island’s general obligation bonds.”

Standard & Poor’s rated the bonds A, “with a negative outlook,” which indicates “the possibility the rating could be lowered in the next 6 to 24 months.”

The primary job of repaying investors will fall upon 38 Studios. Moody’s said about the bonds, “Given the development stage nature of the company, loan payments from 38 Studios have inherently more risk than other revenue streams that have established track records and predictability.”

Meanwhile, another story on the Providence Journal website outlines the entire story of the deal between 38 Studios and Rhode Island, which apparently began as a result of a visit by then Governor Donald Carcieri to Schilling’s Massachusetts home earlier this year for a fundraiser.

Carcieri recounted telling Schilling that he should relocate to Rhode Island, but he added, “I wasn’t thinking anything would come of it.”


 
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Papa MidnightSure thing!03/27/2015 - 9:00pm
Andrew EisenPM - Thanks, I've updated the story.03/27/2015 - 8:59pm
Papa Midnighthttp://arstechnica.com/tech-policy/2015/03/13-year-old-minecraft-player-confesses-to-swatting-police-say/03/27/2015 - 8:38pm
Andrew EisenThat would mean either Nintendo's next home console will be out by next year or the next Zelda game is suffering a two year delay. Both extraordinarily unlikely.03/27/2015 - 8:34pm
Matthew Wilsonsome people are thinking we might have a Twilight Princess situation on our hands, what do you guys think?03/27/2015 - 8:01pm
MechaCrashMiyamoto once said "a delayed game is eventually good, a bad game is bad forever." While this can be taken to excess, it is good that Nintendo remembers it.03/27/2015 - 7:44pm
MaskedPixelanteYay for it not being a buggy mess like AC Unity. Boo that it got delayed til November 2016.03/27/2015 - 7:07pm
Andrew EisenAgreed. Considering we've seen nothing of the game (and those who did see it last E3, said it was super duper early) I would be quite surprised to see it this year.03/27/2015 - 5:28pm
Matthew WilsonI am sure star fox is 2016 too.03/27/2015 - 5:14pm
ZippyDSMleeThe primary reasons I would get a Nintendo system is Zelda and Metroid, Metroid prime collection was beyond words awesome even if 3 was the weakest one. I played TWP on the emulator I have Skyward Sword but like TWP I been putting it off…. LOL03/27/2015 - 5:14pm
Daniel LewisI actually thought star fox would be the game to be delayed,hopefully that isn't as well!03/27/2015 - 5:13pm
Daniel Lewiswoah post shared at the same time matthew,you just beat me!03/27/2015 - 5:11pm
Daniel LewisZelda wii u delayed until 2016 https://www.youtube.com/watch?t=67&v=C6Pzdl1wdUM03/27/2015 - 5:10pm
Matthew Wilsonhttps://www.facebook.com/video.php?v=866919960035802&permPage=1 Who did not see this coming?03/27/2015 - 5:09pm
ZippyDSMleehttp://www.huffingtonpost.com/2015/03/27/kleiner-perkins-verdict_n_6958164.html03/27/2015 - 5:07pm
MechaTama31I am always mysitfied when Cowboy Bebop is held up as an example of a good dub. Is it because it merely makes you want to cover your ears, rather than want to jam red-hot pokers into them?03/27/2015 - 5:04pm
james_fudgeyeah we covered that03/27/2015 - 4:41pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2015/03/13-year-old-minecraft-player-confesses-to-swatting-police-say/ not surprised.03/27/2015 - 3:51pm
Matthew WilsonI know most of my friends first saw robotech when it was on Toonami in the mid 90s, but it is possible that a fan who watched it in the 80s are in a position to do it.03/27/2015 - 1:04pm
Andrew EisenRobotech was mid 80s. Fans of the show (who were kids when it aired) are my age and older.03/27/2015 - 1:01pm
 

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