The former director of the organization that granted a $75 million loan guarantee to 38 Studios alleges that Rhode Island Governor Lincoln Chafee rebuffed attempts to fix the financial situation and effectively forced the studio’s bankruptcy, the Boston Globe reports.
RI governor forced 38 Studios bankruptcy, former official says
Keith Stokes, former director of the Rhode Island Economic Development Corporation (EDC), alleges in court documents that Chafee blocked the now-bankrupt developer’s efforts to restructure debt and raise money in late 2011 and early 2012. 38 Studios declared bankruptcy in June 2012.
The state of Rhode Island filed suit against several people at 38 Studios and the EDC last November, Stroke among them. Schilling and other defendants filed a motion to dismiss the lawsuit in March 2013. In August 2013, a federal judge’s ruling allowed the lawsuit to proceed.
Late last month, Heritage Global Partners announced that the remaining assets from Schilling’s failed companies would be auctioned off Nov. 14-15. You can follow along with all the developments in 38 Studios’ path to bankruptcy in Polygon’s StoryStream.
See More:
Most Popular
- All the new video games launching in 2026
- Cassian Andor says luck brought him this far. Obi-Wan Kenobi and Star Wars history disagree
- How Thunderbolts* evolved from a Die Hard movie into a Breakfast Club movie
- The fact that Lune from Clair Obscur is barefoot the whole time is not gross, it’s fun
- Dune: Awakening’s beta weekend is open — and you can still get in, if you pre-order
