NEW: EDC takes No Action on 38 Studios
Wednesday, May 16, 2012
38 Studios missed a $1.125 million payment that was due to the EDC on May 1, prompting concerns over the company’s financial health.
Schilling’s company received a $75 million guarantee from the state two years ago that could leave taxpayers on the hook if the company goes broke.
"The RIEDC Board of Directors met in closed session to receive a presentation from representatives of 38 Studios as to the company’s confidential financial status and projections," EDC spokesman Mike Blazek said. "Members of the Board asked many probing questions of the company. After representatives from 38 Studios concluded their presentation, the Board then engaged in extended discussion of confidential financial information. The Board did not take any vote. The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due. In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today."
At the time, then-gubernatorial candidate Lincoln Chafee raised concerns regarding the deal and threatened to sue former Governor Don Carcieri if the company failed. Chafee has not indicated what he would like to see the EDC do to help 38 Studios.
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