NEW: Richard J. Land Named 38 Studios Receiver
Thursday, August 09, 2012
Governor Lincoln D. Chafee today announced that attorney Richard J. Land will serve as 38 Studios’ Receiver as the Governor and the State of Rhode Island work to recoup as many taxpayer dollars as possible. Mr. Land has served as a court-appointed Receiver for a variety of businesses and has represented clients in all levels of state court in Rhode Island, in the United States District Court for the District of Rhode Island, and the United State Bankruptcy Court for the District of Rhode Island.
“The Governor has stated that his top priority is salvaging any and all assets of value to minimize the loss to the Rhode Island taxpayer,” Tom Carlotto said. “I respect the Governor’s leadership and take his pledge seriously. We will be aggressive in working to maximize the recovery for the benefit of the taxpayers of this state. This is the first step in a long, multi-pronged process. We will be following a long-term plan to put the state and its taxpayers in the best possible position.”
Mr. Land’s appointment was made following yesterday’s hearing before Judge Mary Walrath in the United States Bankruptcy Court for the District of Delaware. In that hearing, the Court was presented with a negotiated resolution involving the State of Rhode Island, the Bankruptcy Trustee, and the Bond Trustee. Based upon the parties’ agreement, the Court granted relief from the stay to permit the state to seek the appointment of a Receiver here in Rhode Island to take control of the assets of 38 Studios and related entities (38 Studios Baltimore, LLC, Mercury Project, LLC, and Precision Jobs, LLC). The Bankruptcy Court Order also provides for an orderly transition of the assets to the Receiver with cooperation from the Bankruptcy Trustee.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTShortly after the Delaware Court granted the relief requested by the state, four receivership petitions were filed with the Rhode Island Superior Court seeking the appointment of a Receiver for 38 Studios and related entities. Now that these petitions have been granted, Mr. Land will take steps necessary to protect the assets of these companies and work in conjunction with Governor Chafee and the state to formulate an appropriate plan to maximize the recovery for the benefit of taxpayers. These crucial first steps, put in place at the direction of the Governor, provide the legal mechanisms necessary to ensure that the taxpayers are given appropriate consideration and protection by local interests. By having the assets administered here in Rhode Island, the Governor has ensured that the highly compensated professionals in Delaware will not have the opportunity to dictate the cost and means of liquidating these companies without regard to the impact on Rhode Island taxpayers.
