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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.

Tags: 38 studios, rhode island, 38 studios bankrupt, curt schilling

10/4/2013 9:28:27 PM John Shepard

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Comments (8 posts)

Draguss
Friday, October 04, 2013 @ 10:17:43 PM
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These things really last a while, don't they?

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WorldEndsWithMe
Friday, October 04, 2013 @ 10:43:41 PM
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I would SO use this fiasco as a jumping off point for hyping up Kingdoms of Amalur II if I were with whoever gets that property.

They could call it Kingdoms of Amalur II: Restructuring.

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Sol
Saturday, October 05, 2013 @ 12:50:29 AM

lolz...

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KingRed
Saturday, October 05, 2013 @ 4:46:44 PM

World, that hurt. Because it was so funny and couldn't stop laughing.

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CrusaderForever
Saturday, October 05, 2013 @ 8:21:00 AM
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So sad, I hope a great dev gets a crack at a sequel because I really enjoyed KoAR. I am still playing it and have been for a while. I hope to see more of this great universe.

Off topic, really looking forward to getting back into Borderlands 2 on 10/11/13 to try and win some money! :) That's a great idea and gets people playing your game again. However, by the sounds of it there are already tons of players still playing this awesome game! LOOT!!

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Sandtech
Saturday, October 05, 2013 @ 1:14:12 PM
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KOA is very good game. I hate to see all this drama surrounding it.

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PC_Max
Saturday, October 05, 2013 @ 2:54:05 PM
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Is it not free now for PS Plus members?

Keep Playing!

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PlatformGamerNZ
Saturday, October 05, 2013 @ 8:03:58 PM
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well watta you expect i say. i mean this is sorta what seems to happen with this sort of stuff

happy gaming =)

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