EDC board takes no action after hearing plea from 38 Studios

May 16th, 2012 at 1:29 pm by under Nesi's Notes

By WPRI Staff

PROVIDENCE, R.I. (WPRI) – Former Red Sox ace Curt Schilling pleaded for additional state assistance on Wednesday morning at an emergency meeting of the R.I. Economic Development Corporation called to discuss its $75 million loan guarantee for 38 Studios, his video-game company.

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Update: The EDC released a statement this afternoon – here it is – along with this fact sheet (PDF):

The RIEDC Board of Directors met in closed session to receive a presentation from representatives of 38 Studios as to the company’s confidential financial status and projections. Members of the Board asked many probing questions of the company. After representatives from 38 Studios concluded their presentation, the Board then engaged in extended discussion of confidential financial information. The Board did not take any vote. The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due. In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today.

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8 Responses to “EDC board takes no action after hearing plea from 38 Studios”

  1. As I have read the published reports, Schilling has already taken out the capital that he put into 38 Studios which was only $4 million. If 38 Studios is in a cash flow situation, then he should be required to put back this $4 million to alleviate the issue rather than burden the RI taxpayers.

    Why did he get first dibs??????????????

  2. A recent media interview at 38 Studios (Gene Valicenti) revealed from a Schilling quote that many/some/most? of the employees in RI are from California.

    Are they RI residents and paying RI taxes?

    With all this taxpayer dollars tied up in this abomination, it did not even seem to create jobs for Rhode Islanders which is in the doldrums with 11% unemployment. Why not?

    1. tardbeast says:

      confirmed, i know at least 1 cali transplant who moved to RI.

  3. Jim Donahue says:

    Additional State assistance?

    $25 million was set aside to make payments.

    Where did the $50 million they received end up? Something is afoul here.

  4. bobby gee says:

    Thank you Don Carcieri! How come we aren’t hearing from him? He’s the guy who pushed this deal.

  5. Jim Donahue says:

    So what happened to our money is confidential?

  6. B says:

    Who in their right mind didn’t see this debacle coming from a mile away?
    Mr. Fox “would do it again”–hopefully not with our taxes or pension money!

  7. Ed says:

    In the next few months lets see how many more jobs leave Rhode Island. Watch the moving trucks and U Haul leave Rhode Island. There will be no new companies even looking to relocate to Rhode Island.