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...if 38 Studios collapses. That is the Kingdom of Amalur developer, not 38 studios as in number of studios.
source - full article
source - full article
Dang.....the people of Rhode Island just got screwed big time. Seems like the state got a little overzealous with its incentive to lure in businesses. That is way too much money!
With Rhode Island politicians and 38 Studios silent on the precarious financial condition of the developer, the potential cost of the doomsday scenario to taxpayers has come to light. WPRI reports that if 38 Studios can't pay the bonds it received from the state, taxpayers will actually be responsible for paying back $112.6 million through 2020.
The math works a little something this this: The Rhode Island Economic Development Corporation borrowed $75 million from private investors for 38 Studios, at interest rates between 6 - 7.75 percent, with the expectation that 38 Studios would pay it back with the sale of games.
The math works a little something this this: The Rhode Island Economic Development Corporation borrowed $75 million from private investors for 38 Studios, at interest rates between 6 - 7.75 percent, with the expectation that 38 Studios would pay it back with the sale of games.
The situation at 38 Studios is getting worse. The studio is reportedly paying the overdue $1.25 million it owes the R.I. Economic Development Corporation, but did not make payroll this week.
Update: The check 38 Studios hand delivered to the state bounced this afternoon, said EDC chief financial officer Rick Wester. According to WPRI, the EDC will still accept the overdue $1.125 million payment if 38 Studios can find a way to come up with the money.
Update: The check 38 Studios hand delivered to the state bounced this afternoon, said EDC chief financial officer Rick Wester. According to WPRI, the EDC will still accept the overdue $1.125 million payment if 38 Studios can find a way to come up with the money.
Dang.....the people of Rhode Island just got screwed big time. Seems like the state got a little overzealous with its incentive to lure in businesses. That is way too much money!
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