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38 Studios: Rhode Island considers costs of abandoning bonds

Thursday, 30th May 2013 00:29 GMT By Brenna Hillier

The state of Rhode Island is investigating the possibly of not paying lenders who helped finance shuttered Kingdoms of Amalur developer 38 Studios.

According to a report in The Providence Journal, the state’s administration as led by governor Lincoln Chaffee is looking into how much it would cost to get out of the bonds, which are not legally enforceable.

Previously, the government’s position was that it would honour the debts out of a sense of moral obligation. A spokesperson said that even though Chaffee still holds firm to his previous position, that “doesn’t mean you don’t analyze what the situation is, or gather data to understand the ramifications of what that decision would be.”

Although it intends to continue its several months of investigation, the Chaffee administration recently proposed paying 38 Studios’ creditors on a payment plan, shelling out $112.6 million in principle and interest over the course of ten years.

38 Studios ran into major financial trouble last year despite the reasonable success of Reckoning, its first game, amid a flurry of scandals. A planned MMO, Copernicus, was lost in the closure, but may be purchased at an upcoming auction. It was said to be nearly complete. The Kingdoms of Amalur IP is considered quite attractive; it was a joint creation of R.A Salvatore, Ken Rolston and Todd McFarlane, among others.

Thanks, Polygon.

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