According to a report by The Providence Journal, Rhode Island’s administration – led by governor Lincoln Chafee – is researching the cost of not paying back lenders who helped finance 38 Studios.
Chafee and other state leaders have previously said that while the state is not legally obligated to repay the bonds, it would honor the debts out of a “moral obligation”. A Chafee spokeswoman said that while the governor’s position on the matter has not changed, it “doesn’t mean you don’t analyze what the situation is, or gather data to understand the ramifications of what that decision would be.”
Chafee’s latest proposal would have an initial $2.5 million payment to lenders, followed by $12.5 million each of the following seven years. This would allow the state to pay down around $112.6 million ($75 million from the initial borrowing, and $37.6 million in interest) over the course of ten years.
Rhode Island is currently suing 38 Studios for failing to make payments for their $75 million government loan. The state is also attempting to sell 38 Studios’ sole title Kingdoms of Amalur: Reckoning. Rhode Island acquired the Studios assets August of last year, after the developer declared bankruptcy and laid off its entire staff.