Sections

Rhode Island looking into dropping 38 Studios debt

RI's current administration is exploring the cost of not paying back lenders

Rhode Island governor Lincoln Chafee is looking into the costs of not paying back the money owed to lenders due to the collapse of 38 Studios. Gov. Chafee still believes that the state must pay back lenders, with Chafee spokeswoman Christine Hunsinger telling the Providence Journal that the administration is merely gathering data "to understand the ramifications of what that decision would be."

Hunsinger said that the state has been gathering information for several months.

Rhode Island is on the hook for $112.6 million in total: $75 million for the initial loan and $37.6 million in interest. Chafee's proposal is to pay back the total over 10 years, with a first payment of $2.5 million and following installments of $12.5 million.

Related stories

Ex-38 Studios execs to settle suit for $2.5 million

Curt Schilling, three others admit no wrongdoing in proposed end to Rhode Island lawsuit; money would come from insurance

By Brendan Sinclair

No criminal charges in 38 Studios collapse

Rhode Island says "no provable criminal violations" in Kingdoms of Amalur company's downfall, but civil litigation still outstanding

By Brendan Sinclair

Latest comments (1)

Ramifications of a government defaulting on a loan? it's called a huge spike in future debt cost via interest rates as you just tossed in a great deal of risk into the punchbowl.

You really need to gather data to understand that? With the entire world living in debt, Bond rate spikes is the one thing that can really bring it all down.

But of course in this myopic world, everyone tends to look at " well what if we just did this, you know, this one time"
Insanity has become mainstream.

Edited 1 times. Last edit by Todd Weidner on 30th May 2013 6:21pm

2Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.