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Chafee exploring costs of not paying back 38 Studios bonds

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By Randal Edgar

chafee-80.jpgPROVIDENCE -- The Chafee administration is sticking to its position that the state must pay back the lenders who financed Curt Schilling's failed videogame company, 38 Studios, but it is also gathering information on the costs of not paying the money back.

Chafee spokeswoman Christine Hunsinger said Tuesday that while the governor's position has not changed, that "doesn't mean you don't analyze what the situation is, or gather data to understand the ramifications of what that decision would be."

The state has been gathering that information for several months, she said.

Chafee and other state leaders have said that even though the state is not legally obligated to repay the bond holders, its "moral obligation" would make it unwise and costly not to do so.

Chafee has proposed an initial $2.5-million payment, followed by $12.5 million each of the following seven years. That would allow the state to pay down roughly $112.6 million -- $75 million for the initial borrowing and $37.6 million in interest-- over 10 years.


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