Rhode Island governor looking into ramifications of not paying 38 Studios debt

Rhode Island governor Lincoln Chafee is looking into the ramifications of not paying back money owed to lenders following the collapse of Kingdoms of Amalur: Reckoning developer 38 Studios, the Providence Journal reports.

According to spokeswoman Christine Hunsinger, the state has been collecting data for a number of months; however, the administration has no plans to follow through on this decision. Data gathering is currently being done "to understand the ramifications of what that decision would be," said Hunsinger.

Rhode Island owes a total of $112.6 million — $75 million for the initial loan and $37.6 million in interest. Chafee has proposed to pay back this amount over the next decade in installments of $12.5 million.

Earlier in April, Rhode Island legislators began considerations for a proposal that would allow the state to default on the debt it owes as a result of the game studio's collapse.

Proponents of this plan include state representative Karen MacBeth who argued in favor of the proposal, explaining to the state House of Representatives' Finance Committee that "the state of Rhode Island cannot afford to put this burden on the backs of the taxpayers." MacBeth argued that the insurance company that underwrote the loan should pay instead.