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Chafee administration urges repayment of 38 Studios debt

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By Philip Marcelo

PROVIDENCE, R.I. -- Governor Chafee's administration re-affirmed its desire to repay the state's debt on its failed investment in the now bankrupt video-game company 38 Studios.

Richard Licht, Chafee's director of administration, said the governor is "emphatically opposed" to Rhode Island becoming the first state since the Great Depression to renege on a so-called "moral obligation" bond.

"Under no circumstances would I ever recommend the General Assembly not pay these bonds," he said.

Chafee spokeswoman Christine Hunsinger said lawmakers should wait and see what happens with other options the state is exploring to cover the debt, including a pending lawsuit.

Hunsinger also said the administration would make available soon its analysis into the costs and benefits of defaulting on the debt, as well as other options it has explored to either restructure or lower the cost of the debt.

The comments came moments before a panel of lawmakers were slated to once again consider the question of whether or not to the state should pay the $75 million - plus interest - now owed.


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