PROVIDENCE, R.I. (AP) -- The Rhode Island House is planning hearings into the 38 Studios debacle as lawmakers consider a $2.5-million payment related to the state's failed investment in Curt Schilling's now-defunct videogame company.
House Oversight Committee Chairman Michael Marcello said he plans to hold hearings on the state Economic Development Corporation, which in 2010 approved a $75-million loan guarantee for Schilling's startup. He said he expects the review to touch on whether the agency scrutinized the deal closely enough.
38 Studios has since filed for bankruptcy. Governor Chafee's proposed budget for fiscal year 2014 includes $2.5 million in debt service on bonds floated for the company. The EDC has sued Schilling and some of its own former officials, saying they misled its board into approving the deal.