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38 Studios check rejected by EDC

Posted:

(Updated May 18, 10:00 a.m.)

PROVIDENCE – 38 Studios LLC attempted to pay its overdue $1.125 million fee to the state late Thursday with a check the company admitted would have bounced, R.I. Economic Development Corporation officials said.

Executives from the video game design firm founded by former Red Sox pitcher Curt Schilling and lured to Providence with a state $75 million loan guaranty, also told EDC officials that they would be unable to make their next payroll.

After hearing that 38 Studios’ checks were no good, the EDC gave back the attempted payment and told the company to return when there was enough money in the company’s accounts to cover it, said Judy Chong, a spokeswoman for the quasi state agency.

“Upon learning from 38 Studios CFO Rick Wester that there would be insufficient funds, the EDC returned the check,” Chong said. “We remain willing to accept readily available funds.”

The $1.125 million guarantee fee, which is 1.5 percent of the outstanding loan amount, was due May 1.

After defaulting on the payment, 38 Studios asked the state for additional assistance, but the EDC took no action after a lengthy meeting and briefing from the company Wednesday.

38 studios, rick wester, edc, judy chong, economic development corporation, video game developer

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RItruth

Another Don Carcieri screw-up that will be paid for by the taxpayers.

Of course, we can also thank Gary Sasse; the RI Public Expenditure Council; Laurie White and the Providence Chamber of Commerce; former "feet don't fail me now" owner of the once-bankrupt Twin River, Len Wolman; that ridiculous long-haired bore from Taco, Inc., and all the others who empowered that incompetent Carcieri during his eight-year reign of mismanagement and incompetence.

Look in the mirror, all of you, because you all share some of the blame of this 38 Studios fiasco. You all helped bring about this disaster.

Thursday, May 17, 2012 | Report this
erik@tjrussellcompany.com

Another Rhode Island business fiasco. Let's give Curt Schilling $75 million because as an ex baseball player he has so much experience as a successful business person in the incredibly risky business of video game development (NOT!!!!). Hmmm... what if instead of giving "Mr. I pitched a game with a bleeding anke" $75million, we gave 250 deserving, well established small Rhode Island businesses $300,000 each. I bet we have a better outcome than Curt's ego trip business fiasco. But that makes too much common sense in this stupid State.

Friday, May 18, 2012 | Report this
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