Rhode Island Treasurer Says State Should Not Default On 38 Studios Bonds

PROVIDENCE, R.I. (AP) _ Rhode Island General Treasurer Gina Raimondo says the state should pay investors the money due on bonds issued to raise money for videogame company 38 Studios.

Curt Schilling’s company was lured to Rhode Island from Massachusetts in 2010 after the state Economic Development Corporation board agreed to a $75 million loan guarantee, which was supposed to bring hundreds of jobs and millions in tax revenue.

The company collapsed this year, leaving taxpayers to pay the roughly $100 million in principal and interest due on those bonds.

Raimondo told The Providence Journal on Tuesday that defaulting on the 38 Studios bonds could undermine the positive effects of Rhode Island’s pension reform.

She says Rhode Island should not be seen as walking away from its moral obligations.
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Information from: The Providence Journal, http://www.providencejournal.com

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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