Politics
10:35 am
Tue May 29, 2012

Chafee calls 38 Studios "the worst investment that's ever been made" in Rhode Island's history

PROVIDENCE, RI – Former Red Sox pitcher Curt Schilling is breaking his silence, telling The Providence Journal that Rhode Island's state government played a large role in the decline of his video game company, 38 Studios. He says state refusals to approve film tax credits for 38 Studios led to financial distress, and Governor Lincoln Chafee's public remarks about the company's financial health scared off investors.

Meanwhile, Chafee says he doesn't hold out much hope that 38 Studios can be saved. The company went into default on a $75 million state loan last week by laying off its entire staff without notifying state officials. Chafee, speaking at a Memorial Day event in Exeter Monday, said rescuing the start-up is unlikely.

"Well hope springs eternal but it does look bleak," Chafee said. "Just the worst investment that's ever been made I think in the history of Rhode Island."

As a candidate, Chafee was an outspoken opponent of the 38 Studios loan.

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