R.I. Governor Candidates Debate Repayment of 38 Studios
The saga of 38 Studios continues as Rhode Island governor candidates are now debating on what to do with the money that is still owed to the former game developer. The studio, which was founded by former MLB pitcher Curt Schilling, went bankrupt back in 2012.
The state of Rhode Island granted 38 Studios a $75 million dollar loan in 2010 with the promise that the company would bring in 450 jobs by the end of 2012. After 38 Studios failed to make a payment in May 2012, all employees were laid off and the studio was being sued by the state of Rhode Island. The only game that 38 Studios was able to release was the Action/RPG Kingdoms of Amalur: Reckoning which was well received by the gaming community but didn’t sell the best at retail.
Today, the candidates for governor in Rhode Island are discussing whether or not to continue to pay back the bondholders. The Republican candidates are urging that the state doesn’t make the next payment which will be a total of $12.3 million dollars due in November. Meanwhile, Democrat candidates say that Rhode Island cannot default on this loan or it will hurt the state’s ability to borrow money in the future. Democrat candidate Gina Raimondo stated that, “Despite my frustration with everything surrounding this transaction, I believe it is in the best long-term interest of the state and all taxpayers to repay these bonds.”
While no specific plan of action has been decided on yet, it will be interesting to see how the story develops from here. One thing for sure is that this situation will definitely impact the race for governor in Rhode Island.