There are many things that the Ocean State would like to be known for – Newport’s mansions, stuffies, Waterfire, Trinity Rep. But the odds are long against the supposition that we want to be known as the home and final resting place of 38 Studios LLC. And yet, that seems to be Rhode Island’s fate.
Last week, the collapsed video game developer founded by former Boston Red Sox pitcher Curt Schilling filed for Chapter 7 bankruptcy to liquidate its assets.
As the company spiraled into this situation, it became clear that the state was going to have to pay back the bondholders on the $75 million deal that attracted the venture here in the first place. The agreement for the bonds did give the state a security interest in the assets of the company, and if there are no other conflicting revelations, this part of the deal should help ameliorate the state’s pain. Still, the final accounting will cost the state a sum close to $100 million, cash we don’t really have to burn, as well as give us more stains on a reputation for making poor decisions with the public’s money. •