RI official discussed private funding for 38 Studios

A member of the Rhode Island Economic Development Corporation discussed obtaining private funding for 38 Studios after the state approved a $75 million loan guarantee, the Associated Press reports.

Former EDC deputy director J. Michael Saul's emails were released this week as part of an investigation of the state's investment into the bankrupt studio. One of Saul's emails was written a day after the $75 million loan guarantee was approved. An email to a Bank of America executive revealed that another financial institution was considering an additional $25 million loan for the developer.

"I'm confused as to why they were looking for a bank," said Rep. Michael Marcello, chairman of Rhode Island's House Oversight Committee.

The EDC is suing Schilling, Saul and others involved in the deal that provided 38 Studios with the loan guarantee, claiming that the organization was mislead. Given that 38 Studios eventually declared bankruptcy, Saul's emails about private funding could potentially call into question what he and others may have known but didn't disclose about the deal.

Saul stepped down from his EDC position in 2011, according to Providence Business News. You can learn more about 38 Studios' fall in Polygon's StoryStream.

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