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RI Governor Worried About Finances Of Schilling’s Company

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PROVIDENCE, R.I. (AP) — Gov. Lincoln Chafee said Tuesday that Rhode Island is doing “everything possible” to ensure that former Red Sox pitcher Curt Schilling’s video gaming company remains solvent.

The governor told WPRO-AM that he and state economic development officials are working to make sure that Providence-based 38 Studios stays “viable.” He declined to provide more details about the company’s reported financial problems or the discussions.

38 Studios was lured to Rhode Island from Massachusetts in 2010 after Rhode Island offered a $75 million loan guarantee the state said would help bring hundreds of jobs and millions in tax revenue.

Chafee and others criticized the loan guarantee at the time, saying it was putting taxpayer money at risk to help a company with no track record of success. During his run for governor, Chafee called it “one of the biggest risks I’ve ever seen.”

Judy Chong, a spokeswoman for the Economic Development Corp., whose board approved the loan guarantee, said Tuesday she had no information or comment.

A spokesperson for 38 Studios could not immediately be reached. Schilling could not be reached.

Under the terms of the loan guarantee agreement, 38 Studios promised to bring to Rhode Island a total of 450 jobs over three years. An outside monitor was to follow the company’s progress.

The company released its much-anticipated first game, “Kingdoms of Amalur: Reckoning,” to strong reviews in February.

Copyright 2012 The Associated Press.

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