Economy
8:09 am
Thu July 12, 2012

Governor Lincoln Chafee wants a thorough review of 38 Studios

PROVIDENCE, RI – Governor Lincoln Chafee says there needs to be a thorough review of how the Economic Development Corporation monitored the 75 million dollar loan guarantee to 38 Studios. But Chafee won't commit to a specific timetable for that review.

Chafee tells RIPR's Ian Donnis, that Chafee wants a review to examine why the state invested in 38 Studios. He says the review should also look at how the EDC kept track of the 75 million dollar loan guaranty.

Chafee: "at the appropriate time that should occur"

Donnis: "When's the appropriate time?"

Chafee: "well, the first thing is we're getting our team to make sure we protect the taxpayer dollars through the bankruptcy proceedings. That should occur."

Rhode Island taxpayers are on the hook for about 100 million dollars after 38 Studios filed for bankruptcy last month. 38 Studios' owner, Curt Schilling, says the company could have survived with more state help.

However, Governor Lincoln Chafee says he feels vindicated by testimony during the bankruptcy case of failed video game maker 38 Studios.

A bankruptcy meeting on the company's debts and assets began Tuesday in Wilmington, Delaware. Chafee says the testimony supports his stance in 2010 that 38 Studios was a bad bet for public dollars. "When the facts come out, it's going to support what I've been saying: they needed private investment from the beginning. You might say right from the beginning the deal was flawed, that they couldn't survive just alone on the state contribution."

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