Wed, Jun 19, 2013 | 05:33 BST
38 Studios: Rhode Island budget approves bond repayment
After toying with the idea of abandoning certain debts, Rhode Island has found room in its budget to honour bonds which financed bankrupt Kingdoms of Amalur developer 38 Studios.
Reuters reports the Rhode Island Finance Committee approved a budget on Tuesday night which includes a May interest payment of $2.5 million on the bonds.
Rhode Island sold $75 million in taxable bonds in 2010 as part of its bid to woo 38 Studios into the area. The developer would have been responsible for repaying the costs had it not collapsed – an event some critics feel Rhode Island wasn’t entirely uninvolved in, although a lawsuit puts the blame firmly in 38 Studios’ corner – leaving $89 million in initial worth and interest to be paid.
Rhode Island could probably have found a way out of the debt, but has apparently decided to shoulder it despite an expected $30 million budget gap in the next financial year, taxpayer disgruntlement, and concerns over the state’s credit rating.
However, that could change; each year, the payments will have to be approved anew by legislature. This year’s payment must still be signed off on by the House and Senate.