Will Rhode Island ever get beyond the shadow of the 38 Studios-Curt Schilling disaster. RIPR political analyst Scott MacKay on why state government so far has not developed options for putting this behind us.
President John F. Kennedy said famously that ``life is unfair.’’ Some men,’’ he noted, ‘’are killed in a war, some men are wounded and some men never leave the country.’’
Gov. Lincoln Chafee’s administration is doing a financial analysis on the cost of not paying back investors who underwrote the state’s loan guarantee for failed video game maker 38 Studios.
The governor has said it’s important for the state’s reputation to pay back the 38 Studios loan. Chafee’s spokeswoman, Christine Hunsinger, said several state agencies and department heads are conducting an analysis on the cost of not paying back those bondholders.
Lawyers for the defunct 38 Studios video game company were back in court Wednesday, asking a judge to dismiss a lawsuit brought against them by the Rhode Island Economic Development Corporation. The suit alleges that executives of the defunct Curt Schilling enterprise deliberately misled state officials about the financial viability of the company to gain a $75 million state-backed loan.
The Sunday New York Times is out with Matt Bai's lengthy and well-written overview of Rhode Island's disastrous investment in 38 Studios, former Red Sox star Curt Schilling's bankrupt video game company. Bai's story doesn't offer much in the way of new findings, but it will expose the Ocean State's folly to a broad audience of influentials.
So now the most ridiculous and irresponsible decision of former Gov. Donald Carcieri’s tenure has come home to roost. That, of course, would be the decision to gamble $100 million or so of the taxpayers’ money on Curt Schilling’s ill-fated 38 Studios video game company.
The company is now bankrupt. As ProJo State House veteran Katherine Gregg reports, the budget proposal from Governor Lincoln Chafee, the most vocal opponent of this fiasco during the 2010 governor’s race, has proposed making the initial $2.5 million payment to bondholders.