House to hold 38 Studios Hearings

PROVIDENCE, R.I. (AP) -- The Rhode Island House is planning hearings into the 38 Studios debacle as lawmakers consider a $2.5 million payment related to the state's failed investment in Curt Schilling's now-defunct video game company.

House Oversight Committee Chairman Michael Marcello said he plans to hold hearings on the state Economic Development Corp., whose board in 2010 approved a $75 million loan guarantee for Schilling's startup. He said he expects the review to touch on whether the agency scrutinized the deal closely enough.

38 Studios has since filed for bankruptcy.

Gov. Lincoln Chafee's proposed budget for fiscal year 2014 includes $2.5 million in debt service on the bonds floated for the company. The EDC has sued Schilling and some of its own former officials, saying they misled the board into approving the deal.