RI senator wants new look at 38 Studios default

Rhode Island senator calls for risk analysis of possible 38 Studios bond default

Associated Press

PROVIDENCE, R.I. (AP) -- A state Senator wants a formal risk assessment of what would happen if Rhode Island defaults on the $112 million it owes for its failed investment in 38 Studios.

Sen. Edward O'Neill wrote to the Senate Oversight Committee chairman Tuesday requesting an immediate meeting to commission the assessment.

O'Neill, a Lincoln independent, tells The Associated Press that he worries lawmakers could end their session without a complete review of what a default would mean for the state. O'Neill says he taxpayers shouldn't have to pay for the Economic Development Corp.'s loan guarantee to for the video game company started by former Red Sox pitcher Curt Schilling.

Oversight Chairman Sen. James Sheehan says O'Neill's concerns are already under review. He says legislation he has sponsored would require risk assessments going forward.

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