Rhode Island Considering Abandoning Its 38 Studios Debt
While Governor Lincoln Chafee is currently planning to fulfill the obligations of the state's $75 million loan to 38 Studios, there is a chance that Rhode Island might abandon its obligations. The consideration is a balance between fiduciary and civic responsibilities.
Rhode Island officials have asserted that the state is not obligated to repay bond holders, but abandoning the debt might have repercussions for future attempts to secure funding. Repaying the debt puts a burden on the taxpayers that should have belonged to former Red Sox pitcher Curt Schilling and the studio he founded.
Rhode Island is currently pursuing action against Schilling and others to reclaim as much of the $75 million (plus interest) as it is able. The state is also in the final stages of selling off the Amalur property, stating that there has been interest.