The latest bulletins on 38 Studios
May 25th, 2012 at 5:58 pm by Ted Nesi under Nesi's Notes
Just some quick updates for now:
- 38 Studios is in default (again!) for not giving Rhode Island 30 days notice before the layoffs. It has 30 days to “cure the default” by taking other actions before it becomes an official event of default. The company is once again ineligible for state tax credits because it’s in default (if it was ever eligible at all).
- Communication between the state and 38 Studio still isn’t great but Jonathan Savage, the lawyer advising Chafee, was in touch with them last night and today.
- DLT Director Fogarty says a small number of 38 Studios workers have applied for jobless benefits. He expects most will find new jobs quickly. The Verge reported 38 Studios may have never sold their houses after they relocated.
- Governor Chafee suggested he wants a forensic audit of 38 Studios’ finances. He refuses to say what he’s doing to secure documents but says he has “confidence” nothing will happen to the paperwork.
- Chafee asked AFL-CIO’s George Nee to resign from EDC board; Nee refused. But Nee and two others’ terms already expired in February and Chafee says he won’t reappoint them. He’s talking to potential replacements.
- Projo reported that well connected local law firms profited from doing the 38 Studios bond deal in 2010.
- Chafee said he doesn’t think any laws were broken in the 38 Studios deal, but the governor also said he isn’t ruling anything out until he gets more information.
Tags: 38 studios
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
The Wall Street Journal, Barrons, Investor Business Daily, International Business Times, Financial Times, The New York Times, The Washington Post, CNN, Fox News, CNBC, MSNBC, and Bloomberg are going to have a field day with this story. This story is what Pulizer Prizes are made of. That is only the media, wait and see what happens to The State of Rhode Island when Standard & Poor, Fitch, Moody’s,AM Best and Morning Star, start with the how Rhode Island muni’s will be rated. The loan sharks on Federal Hill won’t even lend money to Rhode Island. Rhode Island will be paying usury rates of interest to borrow money.
To all the Rhode Island municipal public sector retirees, you better except no so called COLA’s because after this news is digested you won’t have a pension. I hope you people know how greet people, Walmart might hire you. In my opinion it could have not have to a better bunch of people. You are going to get what you deserve, nothing.
I’m sorry, I just got to laugh at this crap, it is so vintage Rhode Island.