The state of Rhode Island has reached a tentative settlement with the law firm Moses Afonso Ryan Ltd., and one of the firm’s partners, Antonio Afonso Jr., who served as bond counsel to the state on the 38 Studios LLC bond deal.
(Updated, 3:19 p.m.)
Gov. Lincoln D. Chafee on Tuesday issued a statement defending the need for Rhode Island to repay the 38 Studios moral obligation bonds and criticizing gubernatorial candidates Cranston Mayor Allan W. Fung and Ken Block, who have voiced opposition to repayment.
An assessment of the 38 Studios LLC moral obligation bond debt service conducted by SJ Advisors concluded that failure to repay the bonds would probably result in a downgrade of Rhode Island’s bond rating to “junk bond” status.