According to a report by Reuters, Rhode Island’s House Finance Committee has approved a budget which includes an interest payment of $2.5 million on the bonds which financed 38 Studios. The state legislature will have to approve funds each year to make the interest payments and Finance Committee Chairman Helio Melo said that even if it approves a transfer this year, it is not obligated to make one next year.
Rhode Island sold $75 million in taxable bonds in 2010 to make a loan to 38 Studios and lure it to the state. It was originally planned that 38 Studios would repay the costs, but because the company went bankrupt the state could end up paying $89 million for them.
Last month Rhode Island’s administration led by governor Lincoln Chafee began researching the ramifications of not paying back lenders who helped in the financing of 38 Studios but stressed their original decision of honoring the payments had not changed.