Senate committee opens hearings into failed 38 Studios deal

By The Associated Press 

PROVIDENCE, R.I. (AP) _ A state Senate committee is opening hearings into Rhode Island’s $75 million deal with Curt Schilling’s failed video game company, 38 Studios.

The Senate Committee on Government Oversight will be briefed Tuesday on the status of the open criminal investigation into the deal and the lawsuit over it.

It’s also scheduled to discuss the loan guarantee program used to get 38 Studios its money.

Chairman James Sheehan says the committee is looking into what went wrong so senators can propose legislation next session to prevent similar deals in the future.

38 Studios relocated to Rhode Island from Massachusetts in 2010 in exchange for a $75 million state loan guarantee. The company went bankrupt, leaving taxpayers on the hook.         

Sheehan plans for at least two more hearings.

(C) The Associated Press 2015