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access_time May 30, 2013 at 1:49 PM in News by Tyler Colp

Rhode Island evaluating the cost of not paying back 38 Studios debt


The affects of 38 Studios’ collapse last May are still a concern for the state of Rhode Island.

Rhode Island Governor Lincoln Chafee is looking into not paying back the $100 million debt.

Chafee spokeswoman Christine Hunsinger said the governor still plans to pay back the bond holders, but that “doesn’t mean you don’t analyze what the situation is, or gather data to understand the ramifications of what the decision would be,” reports the Providence Journal.

Hunsinger told the Journal the state has been gathering information for several months.

Governor Chafee and other state leaders said that while the state is not required to pay the back the debt, it has a “moral obligation” to do so.

Chafee proposed an initial $2.5 million payment, followed by $12.5 million a year for seven years. With his plan, the state would successfully pay back the full $112.6 million ($75 million for the initial funding, and $37.6 million in interest).

Source: Providence Journal


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