Rhode Island Will Honor Debt Associated with 38 Studios Loan

June 19, 2013 -

After some back and forth from lawmakers in Rhode Island, officials say that they will honor the debt generated from a default on the loan to Curt Schilling's 38 Studios. The state of Rhode Island said that it will officially honor the bonds that financed Kingdoms of Amalur developer 38 Studios after the Rhode Island Finance Committee approved a budget last night that includes an interest payment of $2.5 million, Reuters reports.

The report goes on to say that annual payments must still be signed off on by both the House and Senate and that payments may change in years to come as a result.

In 2010 the state sold $75 million in taxable bonds bring 38 Studios from Massachusetts to Providence, Rhode Island. Eventually 38 Studios went bankrupt, leaving the state on the hook for $89 million. Last month Rhode Island governor Lincoln Chafee (I) and other politics in the state toyed with the idea of not paying back the debt associated with the loan. The state is currently suing Schilling and other offices from the company, and has already secured the assets the company owned - from intellectual property to office equipment...

Source: Reuters by way of Polygon

 


Comments

Re: Rhode Island Will Honor Debt Associated with 38 Studios Loan

Something tells me this will only result in the banks being repaid, while those of us who worked for 38 will still never see our missing paychecks.

Re: Rhode Island Will Honor Debt Associated with 38 Studios Loan

I can't blame Schilling so much as the politicos who invested $75 million into an industry they basically admitted knowing nothing about.

Re: Rhode Island Will Honor Debt Associated with 38 Studios Loan

I'm fine with blaming both parties. One was malicious and/or stupid, and the other just stupid. I mean, it's not impossible for a government investment in a private sector industry to turn out well for both parties (just look at stuff like sovereign wealth funds), but it requires a level of due diligence that tends to be lacking if, like you said, the people involved in deciding whether to invest know nothing whatsoever about the industry.

 
Forgot your password?
Username :
Password :
 

Be Heard - Contact Your Politician