House Votes to Repay “38 Studios” Bond Holders

by ABC6 Chief Political Reporter Mark Curtis

Rhode Island is one big step closer to paying back the “38 Studios” investors.

In a controversial vote Wednesday night, state lawmakers voted 53 to 19, to make the first payment to bond holders in the failed video game company.

Some believe the state will eventually have to pay 112 million dollars for those who invested in Curt Shilling's company.

The governor believes if the bonds aren't paid, Rhode Island will have trouble borrowing money.

Some lawmakers agree with him, and some don't.

State Rep. Frank Ferri (D-RI) voted “yes” saying, “What's the economic impact is going to be if we default on those bonds? If we have higher rates of interest. How is that going to affect us down the road? Is it going to cost us millions more?”

State Rep. Patricia Morgan (R-RI) voted “no” saying, “Well, Studio 38 was included in it and I do not think that we should start paying that. It looks like 2-point million this year. It's really 90 million.”

While no one is confirming there was a formal deal, some East Bay lawmakers supported repaying the “38 Studios” bonds, after plans to put tolls on the new Sakonnet River bridge were delayed until next April.