Lincoln Chafee, governor of Rhode Island, intends to pay back the $75 million loan that brought 38 Studios to the state in 2010 but is exploring the cost of not.
Chafee spokesperson Christine Hunsinger told the Providence Journal Tuesday that the state has been gathering information on the possibility for several months.
"Doesn't mean you don't analyze what the situation is, or gather data to understand the ramifications of what the decision would be," says Hunsinger.
According to reports, Chafee and other state leaders aren't legally obligated to repay the bond holders yet, see it as a "moral obligation."
An initial $2.5 million payment followed by $12.5 million each of the following seven years was proposed by Chafee. This would allow Rhode Island to pay down the $112.6 million loan that adds the original $75 million and $36.7 million that in interest gained over 10 years.
House Finance Committee for Rhode Island considered defaulting on the loan feeling that taxpayers shouldn't be forced to pay for 38 Studios failure. Karen MacBeth (D-Cumberland), representative and sponsor of the bill, said that insurance on the loan would cover the cost.
"The state of Rhode Island cannot afford to put this burden on the backs of the taxpayers," MacBeth says. " Have the insurance company pay the bill."
This month, the 38 Studios vs. Rhode Island court case began. The state claims that the Kingdoms of Amalur: Reckoning developer knew it would fail but did not inform the state, leaving the state hundreds of million in debt.
Currently, Rhode Island is attempting to sell the Amalur franchise gained after the developer went bankrupt last summer. According to lawyers for the state, some have come forward and expressed interest in the franchise said to be worth around $20 million.
