NEW: Treasurer Candidate Almonte Calls on Legislature to Act on 38 Studios Now
Thursday, May 29, 2014
State Treasurer candidate Ernie Almonte called on the General Assembly to negotiate a settlement with 38 Studios bondholders. Speaking before the Pawtucket Rotary Club, Almonte said Governor Chafee and the legislature should work out a settlement before this year’s budget is finalized.
"The best solution for Rhode Island is a negotiated settlement that honors our financial obligations while saving the state millions of dollars," said Almonte. "A negotiated settlement would protect Rhode Island from being relegated to junk bond status for all of our current and future loan obligations. The time to act is now.”
Almonte said forging a settlement before the budget becomes final would reduce the state’s financial liability while not allowing the state to default on its obligations.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“The Legislature can only secure a negotiated settlement before they finalize this year's budget,” Almonte said. “Once the budget is approved, Rhode Island will lose any leverage to negotiate with the bondholders. I call on the Legislature to work with the Governor, to initiate this process today and to reach an agreement within the next 30 days."
Almonte described this option as the middle ground between not paying the loans at all and paying back the full debt.
Related Slideshow: 38 Studios Legal Fees
New state records show that state legal fees associated with the 38 Studios bankruptcy are nearing $1 million. Below is a breakdown of how much each firm has made - and stands to make in the future. Figures are taken from documents provided by the Rhode Island Commerce Corporation.
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