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Tue May 13, 2014
House Finance Committee Takes Up 38 Studios Repayment
The House Finance Committee is slated to meet this Tuesday with the author of a recent report calling on the state to pay back 38 Studios’ bondholders. The appearance comes amid growing debate about whether to skip paying the bonds.
SJ Advisors of Minnesota is slated to deliver a presentation to the Finance Committee, and no public testimony will be taken. A report by SJ Advisors, made public last week. Found that even under a best-case scenario, Rhode Island would be better off paying its debt from 38 Studios.
Some state lawmakers and Republican gubernatorial candidate Ken Block oppose repaying bonds related to the failed video game company, in part since the state isn’t legally required to repay them. Taxpayers remain on the hook for about 90 million dollars due to 38 Studios.
Governor Lincoln Chafee argues that not paying back the bonds will hurt Rhode Island’s reputation and drive up the cost of borrowing. In related news, Standards and Poor’s warns that the state’s credit rating could take a hit if it doesn’t repay the 38 Studios money.
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