Report: RI Governor Chafee Forced 38 Studios Into Bankruptcy
Well, guess they've reached the pointing fingers portion of the fiasco. That figures.
According to former head of Rhode Island's Economic Development Corporation Keith Stokes, it was actually state governor Lincoln Chafee that forced Kingdoms of Amalur: Recknoning developer 38 Studios into bankruptcy.
In court filings cited by the Boston Globe, Stokes claims that Chafee impeded the studio's efforts to restructure its debt or raise additional capital to keep the company afloat. He also says Chafee refused to meet with 38 Studios executives in 2011 to discuss the ongoing issues. After 38 Studios went down, the state of Rhode Island was on the hook for an estimated $90 million, which the taxpayers must now pay. That's the risk you take with loans, ya know?
On the flip side, Chafee claims he did everything in his power to help 38 Studios. The state is alleging that founder Curt Schilling and other studio bosses knew they would run out of money, but never mentioned it to the board. All told, the state's accusations include 17 counts of alleged wrongdoing, including fraud, civil conspiracy, unjust enrichment and negligence. Schilling and Co. obviously have a very different story.
We knew this would get ugly.
10/4/2013 9:28:27 PM John Shepard