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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.

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Kingdoms of Amalur: Re-Reckoning

PS4, Xbox One, PC, Nintendo Switch

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Brenna Hillier avatar

Brenna Hillier

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Based in Australia and having come from a lengthy career in the Aussie games media, Brenna worked as VG247's remote Deputy Editor for several years, covering news and events from the other side of the planet to the rest of the team. After leaving VG247, Brenna retired from games media and crossed over to development, working as a writer on several video games.

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