Gaming News, Game Reviews, Game Trailers, Tech News



 
 

Rhode Island governor allegedly forced 38 Studios closure

0

Former RIEDC director backs up criticism of government inaction

The former head of the Rhode Island Economic Development Corporation has accused the state's governor, Lincoln Chafee, of preventing 38 studios' attempts to avoid bankruptcy, the Boston Globe reports. 

Keith Stokes, the erstwhile head of the organization that approved a $75 million loan to the Kingdoms of Amalur studio, alleges in court documents that the governor actively blocked attempts to restructure the debts leading up the company's declaration of bankruptcy in June 2012.

Though Governor Chafee was a vocal opponent of the deal that lured 38 Studios to Rhode Island prior to taking office, he insists he made every attempt to save the company during its time of need. Rhode Island has since filed a lawsuit against Curt Schilling's company, accusing the developer of fraud, negligence, breach of fiduciary duty, racketeering and conspiracy.

Last month, Heritage Global Partners announced 38 Studio's remaining assets would be sold at auction on November 15. Rhode Island remains on the hook for roughly $90 million. 

Former official says governor forced 38 Studios’ bankruptcy [Boston Globe]


The article continues below. Login to skip ads, get faster mobile, and dibs on betas
 
 

 

TwitterRedditEmailFacebook
 
Kyle MacGregorWeekend Editor // Profile & Disclosures
Fronts2225Posts20Blogs 57Following70Followers111

are two rules to remember if you want to have a good Rule #1: Never run out of Colt Rule #2: Never forget Rule more


 



#38 Studios #Kingdoms of Amalur #Money #Politics
 


READER COMMENTS LOADING BELOW...

Please login (or) make a quick account (free)
to view and post comments.



 Login with Twitter

 Login with Dtoid

Three day old threads are only visible to verified humans - this helps our small community management team stay on top of spam

Sorry for the extra step!

 
spacer