2014 Government Regulations & Business Summit
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By PBN Staff
The revelation that 38 Studios LLC – the company that former Boston Red Sox pitcher Curt Schilling created to produce video games – missed a payment to the state that was part of its deal to receive a loan guarantee for $75 million has created a firestorm.
The original deal, negotiated with Gov. Donald L. Carcieri in his last year in office, was the subject of much discussion during the 2010 gubernatorial race, with candidate Lincoln D. Chafee saying he opposed it.
When Carcieri and 38 Studios closed the deal before Chafee became governor in 2011, Chafee said that he would support the company, if for no other reason than the state was on the hook for its success.
After a weekend of meetings and an emergency session with the R.I. Economic Development Corporation board, the state and the company have not come to any agreement about what to do about the current cash crunch the company seems to be experiencing (few details about the issue have been revealed).
What do you think the state should do about the company?