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Proposed Rhode Island bill would default on 38 Studios loan debt
38 Studios, the now-defunct company created by former Red Sox pitcher Curt Schilling and developers of Kingdoms of Amalur: Reckoning, left a big hole of debt in Rhode Island when it went bankrupt. A $75 million loan guarantee-sized hole, to be exact. Last week, the state's legislature introduced a bill that would rid themselves of that burden. According to an Associated Press report, Representative Karen MacBeth, D-Rhode Island, introduced a bill on Thursday that would cause the state government to default on the loan and thus prevent the Rhode Island Commerce Corp. from making any further payments toward it. Governor Lincoln Chafee argued that a default would harm the state's financial reputation and cause an increase in borrowing costs. This isn't the first time such a bill has been introduced; the AP also reports that an attempt to default on the 38 Studios loan failed last year. The state made a payment of $2.5 million in 2013, but the next payment is substantially larger: $12.5 million. And thus, the legacy of 38 Studios continues to be defined by messy financial arguments.
SEC subpoenas the Rhode Island Commerce Corporation over 38 Studios lawsuit
After the last bit of immature name-calling over the 38 Studios debacle, it must be nice to finally put this whole mess to bed for good so we can... oh, wait. No, it appears that the drama regarding the dead studio continues as the Securities & Exchange Commission has issued a subpoena for the Rhode Island Commerce Corporation regarding its lawsuit against Curt Schilling and the other executives of 38 Studios pre-closure. The subpoenas request both depositions and exhibits pertaining to the ongoing court case against the management of the former studio. The RICC, formerly known as the Economic Development Corporation, was the organization responsible for selling bonds to facilitate the $75 million loan to the now-defunct gaming studio and has been under investigation by the SEC following the company's bankruptcy and dissolution. Neither the SEC nor the RICC is discussing any further details regarding the investigation.
