38 Studios

House Speaker Nicholas Mattiello and Majority Leader John DeSimone plan to meet with representatives of two leading credit-rating agencies in New York City Wednesday to gather information about the possible consequences of not paying back bondholders in the failed video game company 38 Studios.


The judge overseeing the state’s lawsuit over 38 Studios warned lawyers Monday about what he called the dribbling out of information. The state is suing 14 defendants to try to cut taxpayers’ losses from the failed video-game company.

Superior Court Judge Michael Silverstein gently advised lawyers on both sides of the case against the early release of facts that he calls better suited for discussion at trial. That came after Silverstein heard arguments about whether to release documents connected to the case. The judge did not make an immediate decision on that question.

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While economists and media outlets from Providence to Seattle engage in hand-wringing over inequality, Rhode Island’s political leaders seem to have no solutions at all. Smith Hill is bogged down in ridiculous debates over the master lever and the never-ending tsunami that is 38 Studios. Yet, we don’t hear much of anything about raising the state’s minimum wage from the current $8 an hour rate.

Attorney General Peter Kilmartin joins Bonus Q+A to talk about 38 Studios, Deepwater Wind, gun violence and gun control, and a host of other issues.

Ian Donnis/File Photo / RIPR

Attorney General Peter Kilmartin joins Political Roundtable to discuss warnings to the state from credit-rating agencies over 38 Studios; the debating over repaying the company's debt; and other issues.

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.