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]