PROVIDENCE, R.I. -- The board of the Industrial-Recreation Building Authority on Friday authorized its lawyer to "take legal action" against Capco Steel, the Providence company that became a political issue in the 2012 congressional race between U.S. Rep. David N. Cicilline and his GOP challenger Brendan Doherty.
When Capco Steel was granted a $5-million state-backed loan in 2010, the steel fabricator was the poster child for Rhode Island political leaders trying to create jobs in a state struggling with double-digit unemployment.
But Capco defaulted on its loan. IRBA, arm of the Rhode Island Economic Development Corporation, began making the loan payments to Webster Bank in April 2012, shelling out $486,350 since then.
Principal and interest on loan stood at $4.5 million through Feb. 15.