Chafee responds to Schilling’s comments

Governor Chafee didn't waste anytime fighting back against Curt Schilling and his finger pointing.

In an interview with the Providence Journal that was released on Tuesday, Schilling dumped the failure of his company on Chafee and the state of Rhode Island.

At an afternoon press conference, Governor Chafee responded and continued to hammer down on the notion that no-one fully appreciated the risk of getting involved with an unproven businessman, in such a volatile industry.

“It's a tough, tough industry. That's what we've heard from everybody that's been involved in it. A thin margin of error and huge investments.” said Chafee.

Investments that make the state's 75-million dollar handout, look like chump change.

Governor Chafee said on Monday that the kind of money needed to make, market, and maintain the kind of games being developed by 38 Studios, is close to half a billion dollars.

“We did not do due diligence prior to getting in the deal, I think that we all know that now. I was opposed to it, adamantly opposed to it, but once I took office, I wanted to succeed.” said Chafee.

Chafee did say that since he took office, his administration and the EDC, have been doing their due diligence on 38 Studios, going over the monthly financial reports.

And nowhere in those reports did the governor say that there was any indication that 38 Studios was in bad financial shape.

“The red flags just weren't there, they were making their benchmarks and adhering to the criteria of the loan and trust agreement.” said Chafee.

Chafee also defended himself against accusations from Schilling that the last chance 38 Studios had to secure new investment was ruined by comments Chafee made about the company's financial trouble.

“The first public acknowledgement was 2-weeks later. We worked for those 2-weeks with the company to do the best we could to resolve the situation.” said Chafee.

Now the state could have its auditors pouring over 38 Studios financial records as soon as Wednesday.

At this point, Governor Chafee believes that the chances of finding any new investors to get 38 Studios back up and running, is real bleak.

Another EDC member resigned on Wednesday, this time its Lynn Singleton from PPAC.

Governor Chafee said shortly after the announcement that there's no timetable to replace the departed members of the EDC.