Providence Local News

 

State Agency: SEC Probes 38 Studios Loan Guarantee

State Agency: SEC Probes 38 Studios Loan Guarantee

PROVIDENCE, R.I. (AP) _ A spokeswoman for the Rhode Island Economic Development Corp. says the federal Securities and Exchange Commission is investigating the state's $75 million loan guarantee to 38 Studios, Curt Schilling's failed video-game company.

Spokesman Melissa Czerwein said Tuesday that the economic development agency hired a law firm to help handle inquiries from the SEC over five months starting last fall. She says the agency paid more than $100,000 to the firm.

 The Providence Journal reports that Czerwein would not provide details about what the SEC may be looking for. She says the state is maintaining confidentiality at the SEC's request.

8 Studios went bankrupt in May 2012 and the state is on the hook for about $90 million related to the deal, which was financed with bonds.

Photo Credit: Shutterstock/Stephen B. Goodwin

           

 

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