EDC Hires Law Firm to Recoup 38 Studios Losses - ABC6 - Providence, RI and New Bedford, MA News, Weather

EDC Hires Law Firm to Recoup 38 Studios Losses

     By Mark Curtis

mcurtis@abc6.com

     Armed with lawyers and staff members, Governor Chafee announced the Economic Development Corporation has hired the Providence law firm of Wistow and Barylick. Their charge is to look for salvageable assets of 38 studios...which even though it's in bankruptcy: The whole goal seems vague...so we asked.

     ABC 6 Political Reporter Mark Curtis asked Governor Chafee,  "The games in development may have value, to an Electronic Arts or another company. Are those the kinds of things you are looking at?" Governor Lincoln Chafee, (I) Rhode Island, said, "Yes, you hit on some of the areas we'll be looking at."

     But will they target anyone else, such as past EDC Board Members and staff who approved 38 studios; how about former Gov. Don Charier who backed the deal; or, even Curt Schilling himself. The lawyers would not rule anyone in or out.

    Max Wistow, new EDC special counsel says, "But to be more specific, at this point, would be entirely, entirely, premature."

    ABC6 Reporter Mark Curtis. "This whole press conference came off as something of a legal Hail Mary pass. Not only are they not saying whom they are going to target, they are also not saying how much money they might get back."

     The law firm will not be paid by the hour. But if it can recover money for Rhode Island - from the 38 studios mess - lawyers will  get paid 16 percent of the take. Rhode Island lent 38 Studios 75 million bucks. The bottom line, there are no guarantees of reserve.

     John Savage, EDC Lawyer says, "But we're just not able to do that today."  ABC 6 Reporter Mark Curtis says, "But in truth, it's possible you may be able top recover nothing, correct?" John Savage responded, "That is certainly a possibility."