Former head of Rhode Island Economic Development Corp. accuses Lincoln Chafee of forcing Curt Schilling’s company into financial failure.
Rhode Island governor Lincoln Chafee forced Curt Schilling’s video game company 38 Studios into bankruptcy, according to the former head of Rhode Island’s Economic Development Corporation.
In court filings obtained by the Boston Globe, Keith Stokes claimed that Chafee impeded 38 Studios’ efforts to restructure its debt or raise additional capital to keep the company afloat in late 2011 and early 2012.
The filing also claims that Chafee refused to meet with 38 Studios executives in 2011 to discuss the issues the Kingdoms of Amalur studio was facing. 38 Studios went bankrupt last year, leaving Rhode Island on the hook for an estimated $90 million related to a controversial $75 million loan that brought 38 Studios from Massachusetts to Rhode Island in 2010.
A spokesperson for Chafee’s office had no comment when approached by the Boston Globe. The paper points out that Chafee, who was opposed to the deal, insists that he did everything in his power to help 38 Studios remain financially solvent.
Last November, the state of Rhode Island sued Schilling, Stokes, and other members of the team that orchestrated the 2010 deal, claiming they knew the company would run out of money, but did not raise these concerns to the board. In total, the state’s complaint includes 17 counts of alleged wrongdoing, including fraud, unjust enrichment, civil conspiracy, and negligence.
Stokes and Schilling deny the allegations, saying 38 Studios did in fact disclose its financial situation to the necessary parties. Schilling has been particularly outspoken about Chafee, calling the governor a “dunce of epic proportions” last summer.
A 38 Studios liquidation auction will take place next month. Featured in the auction are a number of intellectual property assets in the Amalur fantasy universe. These include the massively multiplayer game Project Copernicus, sequel rights to Kingdoms of Amalur: Reckoning, and merchandise rights and revenue streams associated with the Xbox 360, PlayStation 3, and PC versions of Kingdoms of Amalur: Reckoning.
Also featured in the auction are intellectual property rights for Big Huge Games franchises, including Rise of Nations, Rise of Legends, and Catan.
Read and Post Comments | Get the full article at GameSpot
Powered by WPeMatico
