R.I. received no bids to explore defaulting on 38 Studios debt

Earlier this year, Rhode Island lawmakers budgeted $50,000 to study what might happen if the state defaulted on its $75 million loan guarantee to former Red Sox pitcher Curt Schilling's bankrupt 38 Studios.

The state sent proposals to 30 firms and advertised in publications like the Wall Street Journal. The deadline for bidders was Oct. 25. There were, according to the Providence Journal, no bidders.

In the wake of that revelation, former securities lawyer and investment banker Edward "Ted" Siedle said he and his firm, Benchmark Financial Services, would be interested in conducting the investigation.

Siedele also told the Providence Journal that he doesn't believe there's an "unconditional obligation" to pay all debts.

"I don't think there's an obligation for anyone to pay all debts," he said. "You know, errors, the bill for services you never got, the phone bill that's higher than it should have been, all those things. There's no unconditional obligation to pay."

Former Red Sox pitcher Curt Schilling's 38 Studios declared bankruptcy in June 2012. In November 2012, the state filed suit over a $75 million loan guarantee extended to the developer. A judge's ruling in August 2013 allowed the lawsuit to proceed, and depositions began in late October. An auction for remaining assets was set for this month.

You can follow Polygon's continuing coverage of the 38 Studios saga in Polygon's StoryStream.