Schilling's 38 Studios In Deep Doo-Doo Again

((HT: WPRI-TV))

Curt Schilling's video game business, 38 Studios, got a sweet deal from the state of Rhode Island to headquarter its business there- and, since the company went belly up, it appears the state is on the hook for (up to) $90-million of public funds.

There is now a boatload of public debate as to whether or not the money may even show up on coffers as Rhode Island may go ahead and default on the loans.

Now, the current Speaker, Nicolas Mattielo and his fellow members of state government may ALL be questioned by Rhode Island state police to see if there was any kind of muscling to approve the funds in the first place.

According to WPRI-TV, there is evidence of unregistered lobbying on behalf of 38 Studios.

From Boston.com's monitoring of the case:

But a contract uncovered by WRPI showed that 38 Studios had agreed to pay $300,000 per year to an associate of the state’s former House Speaker, Gordon Fox, to work with government agencies and officials.

WPRI also has an interview in their Target12 unit that says 38 Studios registered no one even though former R.I. Economic Development Corporation (EDC) executive director Keith Stokes publicly acknowledged a $125-million loan-guarantee program was created in part to benefit the company, and even though 38 Studios insiders repeatedly contacted state officials, first to secure taxpayer-backed funding and later to request tax credits.

What's the phrase about a duck...???

Here's an interview with the attorney, Michael Corso, who is close to former Rhode Island House Speaker Gordon Fox. Corso helped put together the 38 Studios deal that looks like it will be in debate for a long time to see if the state will stay on the hook.

Rhode Island Says Schilling Suit Will Go...

((HT: WPRI-TV))

Rhode Island's economic development agency (RIEDC) says there is "crushing evidence" that Curt Schilling and others concealed financial information about 38 Studios and that its suit against them should be allowed to move ahead.

200 pages of documents were released in Superior Court responding to Schilling's request to have the suit thrown out.

38 Studios filed for bankruptcy last summer and caught hell from the state of Rhode Island for defaulting on a $75-million loan as part of the state's economic development policy to attract businesses to have their bases there.

There was a thought a couple of weeks ago that some Rhode Island lawmakers wanted to go ahead and default on the loan. State insurance would have covered the losses...

Here's coverage from last month where Schilling tapped into insurance money to pay for his legal defense instead of giving it to creditors...

Schilling, 38 Studios execs tap insurance policy for state lawsuit

BREAKING: Schilling's 38 Studios Strikes Out

From multiple Boston sources including MyFoxBoston and WHDH-TV

A source at video game blog Joystiq tells FOX 25 that all employees at Curt Schilling's 38 Studios have been laid off.

The news comes after Joystiq.com reported that workers at 38 Studios haven't gotten a pay check since May 1 and their health insurance runs out Thursday.

The former Boston Red Sox legend had been in discussions with Rhode Island politicians to keep his video game company afloat- even after an initial infusion of a $75-million loan. He moved the company from Massachusetts to its new home in 2010.

Governor Lincoln Chafee and his staff were looking into whether or not 38 Studios could even receive subsidies to stay afloat since the company was incorporated in Delaware.

WPRI-TV obtained a copy of the e-mail Schilling sent out as part of the dissolving...

“The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary. These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012.”

In one of those unrelated-probably related anyway moves...

CVS Caremark executive Helena Foulkes resigned as vice chair of the R.I. Economic Development Corporation. Moody's Investors Service, according to WPRI-TV, said Rhode Island will pay off bondholders if 38 Studios defaults.

Here's some of the last set of stories before this afternoon's announcement...
((HT: WPRI-TV Providence))

38 Studios may miss out on tax credits: wpri.com

Governor Chafee held a press conference at the Rhode Island state house saying that he would gladly extend the life of the company if there was any confidence in the company's profitability, and he didn't see it coming.

"It's not a good situation," he said. "We just have to deal with the ramifications."

"I'm not here to share good news. I wish the situation was different."

Here are the documents associated with the 38 Studios collapse... including the Cure of Default Letter from the 18th of this month...

Here's Schilling leaving Studio 38 with boxes in the back of his car...
Never a good sign... and you can see his license plate clear as day...
If anyone is interested in tracking him down for a stern talking-to...
((HT: MyFoxBoston))


Did you see the plate...???
Here's more coverage from Providence...
((HT: WPRI-TV again))

Schilling's firm lays off all employees: wpri.com

The larger question the HQ has in all of this is: Where did the almost US$50-million go in a TWO-MONTH period...???

How do you burn through something that large that fast...???
And what is the four-letter's stance on Schilling as an analyst...??? The HQ is fairly certain that Schill won't be doing any radio in Boston any time soon, either...

Here's one last round of coverage (for now) from our friends at NECN...