38 Studios, Schilling ask Rhode Island for more money; state officials freeze
Today's emergency meeting by Rhode Island officials to determine what they are going to do about Curt Schilling's 38 Studios has concluded with officials freezing like deer in headlights. Nothing happened.
Rhode Island's Economic Development Corporation will take no immediate action to aid the developer, following a closed-door meeting attended by Governor Lincoln Chafee and Schilling, who asked for additional help to save the company. Schilling refused to answer press inquiries and officials wouldn't declare how much money the studio is seeking.
"How do we avoid throwing good money after bad?" Chafee is quoted by the Associated Press as saying after the three-hour emergency meeting finished.
"The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due," reads an official statement by the EDC board. "In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today."
If the studio doesn't receive assistance, it appears Rhode Island taxpayers may very well be on the hook for the $75 million 38 Studios loan that, after interest, would require paying back $112.6 million through 2020.
Full Rhode Island EDC board of directors statement on today's proceedings:
"The RIEDC Board of Directors met in closed session to receive a presentation from representatives of 38 Studios as to the company's confidential financial status and projections. Members of the Board asked many probing questions of the company. After representatives from 38 Studios concluded their presentation, the Board then engaged in extended discussion of confidential financial information. The Board did not take any vote. The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due. In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today."
