Yesterday we reported that no one bid on a $50,000 proposal put out by the state of Rhode Island to examine its options if it decided not to pay back the debt related to the $75 million loan given to Curt Schilling's 38 Studios. The state is on the hook for over $90 million or more (depending on who you ask) related to the deal. Well it turns out that – as of yesterday – one firm has stepped forward.
According to the Providence Journal former federal securities lawyer and investment banker Edward "Ted" Siedle, who's in the area doing work for a local union, notified the state that he is interested.
Siedle, who was hired by Council 94 of the American Federation of State, County and Municipal Employees this year to review the state's pension fund investments, made his interest known in an email to Department of Administration Director Richard Licht.
"My firm, Benchmark Financial Services, Inc., is interested in providing the services the state is seeking related to the 38 Studios financing," Siedle wrote. "I can provide additional information about the firm if you so desire. Please consider us for the assignment."
The General Assembly budgeted $50,000 this year for a study on how defaulting on the 38 Studios loan, expected to cost the state $112.6 million according to the Providence Journal, would impact the state.
We'll continue to follow this story as it develops, but it is interesting that lawmakers still might entertain the idea of defaulting on this massive debt.
Source: Providence Journal