Grim Prospects for Rhode Island Recovering Its 38 Studios Invest - ABC6 - Providence, RI and New Bedford, MA News, Weather

Grim Prospects for Rhode Island Recovering Its 38 Studios Investment

      The shades are drawn at the now vacant offices of 38 studios in downtown Providence, but a lot of mystery remains inside. Among the questions...is there anything the Rhode Island can do legally...to recover any of the 75 million dollars in state loan guarantee..it gave Curt Schillings failed company:

      Gov. Lincoln Chafee, (I) Rhode Island said, "I'll do everything possible and we'll evaluate the different avenues we can take. My job is to recoup every penny I can for the taxpayer. That's my job."

      Rhode Island is the first creditor in line, in case any remaining assets can be carved up from 38 Studios.

      ABC6 Reporter Mark Curtis says, "An expert on bankruptcy law tells ABC-6 that the lawsuit filed by Citizens Bank on Thursday will likely not be the only one. Take Bank RI for example, it's on the hook for an 8 million dollar loan. That loan was supposed to be secured by Rhode Island's Film Tax Credits. The only problem is, those tax credits were not available."

       Ed Mazze, a retired URI Business Professor says, "By the time it's over there's going to be a lot of lawsuits." But retired business professor Ed Mazze says, there may be many assets from the failed company, for the State to recover

       Ed Mazze, Retired URI Business Professor "I looked through the entire petition. My best guess is if there are 3 million dollars worth of assets left - in total - I would be surprised."

       Professor Mazze predicts after all the legal battling, Rhode Island could lose up to 115 million dollars on this video game gamble gone bad.