13 Jun

WPRI reports that Governor Lincoln Chafee of Rhode Island is in the process of selecting a law firm that is supposed to explore options for the state to recover some of the many millions the state had invested in the recently-defaulted 38 Studios. More information is included after the jump.

38 Studios, the developer behind the EA-published Kingdoms of Amalur: Reckoning, was forced to layoff all of its employees several weeks ago, and the company filed for liquidation last week. The state of Rhode Island had provided a government-backed loan to the company for a total of $75 million. An estimate by WPRI suggests that the state may lose as much as $90 million as a direct result of its support to the studio, before all is said and done.

Though the Governor’s office is currently in talks with several parties, a law firm has not yet been appointed to pursue possible avenues that might help the state recover as much as possible through the company’s insurance.

Aside from the $75 million in state-back loands, 38 Studios also held an $8.5 million loan from the Bank of Rhode Island, which had been backed with tax credits that have failed to materialize.