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Ex-EDC Chief: RI Gov. Forced 38 Studios Bankruptcy

schilling38studios

By ERIKA NIEDOWSKI, Associated Press

PROVIDENCE, R.I. (AP) — The former head of Rhode Island’s economic development agency says Gov. Lincoln Chafee forced Curt Schilling’s video game company into bankruptcy by impeding its efforts to restructure its debt or raise additional money.

Former Economic Development Corp. Executive Director Keith Stokes says in new court filings Chafee “stood in the way” of 38 Studios’ attempts to restructure its debt or raise more capital. He alleges Chafee refused to meet with company executives in 2011 to discuss the issues and “rebuffed” efforts to bring them before the EDC board.

The EDC approved a $75 million loan guarantee for 38 Studios. The agency sued Stokes, the former Boston Red Sox pitcher and others last year, claiming they knew the company would run out of money but concealed that information.

Chafee’s spokeswoman had no immediate comment.

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WGGB encourages readers to share their thoughts and engage in healthy dialogue about the issues. Comments containing personal attacks, profanity, offensive language or advertising will be removed. Please use the report comment function for any posts you feel should be reviewed. Thank you.
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