Rhode Island Gubernatorial Candidate Urges Lawmakers to Stop Paying 38 Studios Loan Debt

Rhode Island Republican Gubernatorial candidate Ken Block is telling the state's legislative leaders to "reject calls to repay the 38 Studios bonds."

"The latest version of the debate is once again boiling down to who deserves to be protected—38 Studios bondholders or the taxpayers of Rhode Island," Block said Monday.

Block's comments are in response to a consultant hired by the Chafee administration urging lawmakers that not paying down the debt related to the 38 Studios loan will have a devastating effect on the state's ability to secure credit in the future.

"38 Studios was a bad deal and a bad investment from the very beginning and now Rhode Island taxpayers are being asked to take the hit for bondholders who should have known better," said Block. "Taxpayers are essentially being asked to assume all the risk, even though bondholders should have known the state might never stand behind the bonds given the controversial nature of what happened in 2010…Three of the four gubernatorial candidates in 2010 were against this deal from the beginning."

"As long as there are serious legal questions still to be decided, we need to stop the repayment process. Just last week, we heard new revelations about lobbying irregularities around 38 Studios and the State Police have launched an investigation into that."

You can read more of Block's comments in the Providence Journal.

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