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38 Studios makes overdue payment; company’s future remains unclear

May 18, 2012

Quick hits from a news conference held by at mid-day by Governor Lincoln Chafee:

– 38 Studios has made its overdue payment to the state of $1.125 million.

– Chafee says the company ran into trouble because of difficulty in getting private capital.

– It remains unclear if 38 Studios will be able to pay its employees.

– Chafee says he opposes giving 38 Studios any additional money, but the company remains under consideration for a $2.1 8.4 million in film tax credits.

– The governor proposed moving oversight of the film tax credit program from the State Council on the Arts to the state Tax Division, since, he says the oversight will be more stringent.

– The next deadline for 38 Studios to come up with its own cash to make a payment to the state is mid-2013.

– Chafee, an opponent of the $75 million dollar loan guaranty to 38 Studios, said he didn’t feel vindicated by the recent turn of events. But he said the state will never make a similar deal, at least not during his tenure as governor.

One Comment leave one →
  1. Mister Guy permalink
    May 18, 2012 8:22 pm

    I heard last nite that the check that 38 Studios hand-delivered to the State of RI recently bounced. True?

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