New RI Governor Vows to Keep an Eye on 38 Studios

November 9, 2010 -

Curt Schilling’s 38 Studios has received an initial payment of $13 million from the Rhode Island Economic Development Corporation (EDC) as part of a $75 million bond deal put together to lure the developer from Massachusetts to the Ocean State.

38 Studios is slated to receive approximately $51 million in all, with $20 million held in reserve in order to guarantee three years worth of repayments on the debt. Schilling’s firm will receive the rest of the money over the next 15 months as it meets certain milestones.

Rhode Island’s governor-elect, and opponent of the 38 Studios deal, Lincoln Chafee (pictured) stated that he was disappointed over the closing of the loan, as he would have liked to “formally contribute to the process.” He wished 38 Studios success while vowing to do everything in his power “to protect the interests of the taxpayers of our state.”

Chafee also promised to keep watch over the EDC and 38 Studios, saying, “I will, however, ensure that 38 Studios fully and completely comply with each and every commitment that it has made to the taxpayers of Rhode Island.”

A Providence Journal story features details on the fund raising used to fuel the 38 Studios deal, which will be generated by a bond sale. Moody’s gave the bonds in question an A2 rating, “three notches below the Aa2 rating on Rhode Island’s general obligation bonds.”

Standard & Poor’s rated the bonds A, “with a negative outlook,” which indicates “the possibility the rating could be lowered in the next 6 to 24 months.”

The primary job of repaying investors will fall upon 38 Studios. Moody’s said about the bonds, “Given the development stage nature of the company, loan payments from 38 Studios have inherently more risk than other revenue streams that have established track records and predictability.”

Meanwhile, another story on the Providence Journal website outlines the entire story of the deal between 38 Studios and Rhode Island, which apparently began as a result of a visit by then Governor Donald Carcieri to Schilling’s Massachusetts home earlier this year for a fundraiser.

Carcieri recounted telling Schilling that he should relocate to Rhode Island, but he added, “I wasn’t thinking anything would come of it.”


 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
MaskedPixelantehttp://www.destructoid.com/dark-souls-ii-scholar-of-the-first-sin-upgrade-and-pricing-systems-detailed-289743.phtml Dark Souls 2 pricing revealed, is only mildly confusing.03/30/2015 - 6:02pm
MaskedPixelantehttps://twitter.com/yugiohtas/status/582642955489431552 Roger Slifer sent to the graveyard.03/30/2015 - 3:49pm
james_fudgeEZK: it sounds like a carry-over bug from Demon's Souls.03/30/2015 - 1:29pm
Andrew EisenJust watched a clip of one of his correspondent appearances on The Daily Show. Seems like he'll be a good fit.03/30/2015 - 1:26pm
MaskedPixelantehttp://www.nytimes.com/2015/03/31/arts/television/trevor-noah-to-succeed-jon-stewart-on-the-daily-show.html The Daily Show with Trevor Noah.03/30/2015 - 1:17pm
E. Zachary KnightApparently there is an item duping glitch in Bloodborne. I loved those glitches in old Final Fantasy games. They were great. Nothing like infinite Excaliburs for Ninja's to throw.03/30/2015 - 12:58pm
Papa Midnightis no market for these games. There will be no intreospection whatsoever. It's either that or they blame piracy.03/30/2015 - 11:35am
Papa MidnightI'd like to take this time to reiterate the utter mess of a PC port that is Dead or Alive 5, which is missing significant amounts of features on PC in comparison to it's console counter-part. When sales go poorly, I'm certain the excuse will be that PC03/30/2015 - 11:34am
E. Zachary KnightSleep and sanity? No need for that here. Check out our experience at Super! BitCon as we made a game while visitors got to play games. Game Jamming During A Game Convention: A Convention Jam Tale. http://tinyurl.com/ogx46t703/30/2015 - 10:43am
ZippyDSMleePlank? PPLLAAANNKKK!!!!! :P03/30/2015 - 10:05am
MaskedPixelantehttps://www.youtube.com/watch?v=kXYXuXX48m8 Take the "no-prank pledge" today.03/30/2015 - 9:11am
ZippyDSMleecrap around. It’s quite annoying but kinda fun like galaxy...even if has the power ups I hate the planets... oh and here comes a C&D in 3...2.....03/29/2015 - 11:45pm
ZippyDSMleeI was never that much of a fan they messed up the power ups, the level design was good enough for the time but ...meh.. Playing through sunshine again since I am no longer a south paw the controls are still stupid there's little to no options to change cr03/29/2015 - 11:45pm
Cheater87http://www.independent.co.uk/news/uk/home-news/parents-could-be-reported-to-police-if-children-play-violent-video-games-like-call-of-duty-and-grand-theft-auto-10141697.html03/29/2015 - 11:45pm
ZippyDSMleehttp://www.afterdawn.com/news/article.cfm/2015/03/29/click-here-to-play-super-mario-64-in-hd03/29/2015 - 11:45pm
ZippyDSMleeMedia mafia wants you to sleep wif the fishes!03/29/2015 - 11:44pm
MechaCrashThe MPAA and RIAA are a pack of extortionists and thugs, and they both need to be destroyed.03/29/2015 - 10:19pm
ZippyDSMleehttps://torrentfreak.com/mpaa-wanted-less-fair-use-in-copyright-curriculum-150329/03/29/2015 - 10:17pm
PHX CorpI have to say somthing about an injustice in the Xbox video Store, the first 6 Star Wars films are not available in either SD or HD03/29/2015 - 6:17pm
mthielThis reminds me of schools a few years ago who forbade their students from having MySpace accounts. I don't mean blocking MySpace from the school, I mean banning the kids from having accounts)03/29/2015 - 5:12pm
 

Be Heard - Contact Your Politician