38 Studios

Ian Donnis / RIPR

Outside fiscal advisers told the House Oversight Committee Thursday that lawmakers need more information to decide the merits of paying debt related to the failed video game company 38 Studios.

Standard & Poor's Rating Services has put Rhode Island's credit on watch with negative implications due to ongoing debate about paying back bondholders who invested in the failed video game company 38 Studios.

In an advisory released Monday, S&P said it was lowering the rating on bonds issued by the Economic Development Corporation for 38 Studios in 2010 from A to BBB.

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So here’s another report that shows just how badly the General Assembly has fumbled the 38 Studios ball. Gov. Lincoln Chafee has released a financial consultant’s report that shows that it would cost less for the state to pay off the 38 Studios  bonds than to default.

The finding, by the firm SJ Advisors, states that Rhode Island’s credit rating would take a significant hit if the state walked away from the $75 million in  bond obligations to those who invested retired Red Sox pitcher Curt Schilling’s folly, 38 Studios.

Ian Donnis/File Photo / RIPR

A report commissioned by the Chafee administration has found that even under the best-case scenario, Rhode Island will be better off paying back bondholders who invested in the failed video-game company 38 Studios.

Ian Donnis/File Photo / RIPR

Pablo Rodriguez joins Political Roundtable this week to discuss the latest developments related to 38 Studios; competing legislative plans on funding infrastructure improvements; Governor Chafee's effectiveness as a lame duck; and the impact in Rhode Island of climate change.


What’s worse than the 38 Studios fiasco for Rhode Island ‘s political and economic reputation? RIPR political analyst  Scott MacKay points to the aftermath.

It’s been nearly four years since  then- Gov. Donald Carcieri, the state Economic Development Corporation and the General Assembly foisted the disaster that is 38 Studios on Rhode Island taxpayers.

Welcome back to my weekly column. Your tips and thoughts are always welcome at idonnis (at) ripr (dot) org, and you can follow me through the week on the twitters. Let's get to it.

State Senator Dawson Hodgson (R-North Kingstown), the Republican candidate for attorney general joins Bonus Q&A to discuss unanswered questions about 38 Studios, his challenge to AG Peter Kilmartin, his effort to impose stiffer sentences for illegally possessing a gun, and many other issues.

Ian Donnis/File Photo / RIPR

Republican attorney general candidate Dawson Hodgson joins Political Roundtable this week to discuss the ongoing probe involving former House speaker Gordon Fox; Hodgson's challenge to Democratic AG Peter Kilmartin; questions of confidentiality involving the development of former I-195 land; and other issues.

Superior Court Judge Michael Silverstein took under advisement Friday morning a request to release 4000-plus pages of depositions in the state's lawsuit over failed video game company 38 Studios.

Silverstein heard about 90 minutes of competing arguments that releasing the depositions will either serve the public interest or compromise the right to fair trial of at least some of the defendants in the case. It's not clear when he'll decide the request to release the depositions, which was made by the Providence Journal and the House Oversight Committee.

Ian Donnis / RIPR

State Representative Michael Marcello (D-Scituate), who lost the battle last month to succeed Gordon Fox as House speaker, says he's unsure if members of the faction that backed him will try to increase their numbers by supporting primary challengers this September.

Don Boorman / RIPR

The House Oversight Committee will hold its first meeting Thursday since recently getting a new chairwoman.  The new chair has been a sharp critic of paying back bondholders who invested in failed video game company 38 Studios.

After winning his post last month, House Speaker Nicholas Mattiello ousted his rival for the speakership, Michael Marcello, from the chairmanship of House Oversight. He replaced Marcello with Representative Karen MacBeth of Cumberland, who sharply criticized last year’s payment to bondholders in 38 Studios.

State Representative John "Jay" Edwards (D-Tiverton) joins Bonus Q+A this week to talk about tolls on the Sakonnet River Bridge; why RI's roads and bridges are in such poor repair; whether the General Assembly is doing enough to boost the economy; the political fallout from 38 Studios; and much more.

Now comes another high-tech blabber seeking to blame Gov. Lincoln Chafee for the Curt Schilling -38 Studios fiasco that was actually done in the waning days of Gov. Donald Carcieri’s administration.

John Smedley, president of Sony Online Entertainment, slammed Chafee in a series of twitter comments this week. But his arguments are so incongruous that it is very difficult to take him seriously.

It’s more like he has been sampling the new legal stuff in Denver or Seattle.