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R.i. governor: schilling's wrong to blame game firm's financialwoes on the state by icdenta icdenta





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R.i. governor: schilling's wrong to blame game firm's financialwoes on the state by
Article Posted: 09/19/2013
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Articles Written: 1096
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R.i. governor: schilling's wrong to blame game firm's financialwoes on the state


 
Business,Business News,Business Opportunities
By The Associated Press PROVIDENCE, R.I. Rhode Island s governor said Tuesday thatformer Red Sox pitcher Curt Schilling is wrong to blame the statefor any of his video gaming company s financial woes and to accusethe state of broken promises. Gov. Lincoln Chafee disputed Schilling s assertion that he haddamaged the company by making public comments about its financialtroubles, telling The Associated Press that is notaccurate. In his first public remarks on the company s problems, Schillingtold The Providence Journal for Tuesday s editions that Chafee srecent remarks that the state was trying to keep his companysolvent were devastating.

He said that shortly after thosecomments, a video-game publisher pulled out of a $35-million dealto finance a new game. The governor is not operating in the best interest of thecompany by any stretch, or the taxpayers, or the state, Schilling told the newspaper. We re trying to save thiscompany and we re working 24/7. The public commentary has been asbig a piece of what s happening to us as anything out there.

Schilling also said the state promised and did not deliver film taxcredits for 38 Studios and refused to allow the company to defer a$1.1 million payment to the Economic Development Corp., forcing itto miss payroll on May 15. Chafee would not offer details about the tax credits but disputedSchilling s account. A message left for Schilling was notimmediately returned Tuesday. He also told The AP he s more interested in protecting RhodeIsland taxpayers than in responding to Schilling s claims. 38 Studios, which was lured to Rhode Island from Massachusetts in2010 with a $75 million loan guarantee from the EDC, laid off itsentire workforce last week, including about 300 employees inProvidence and more in Maryland.

The state would likely beresponsible for some of 38 Studios debts should it collapse. The firm s financial troubles came to light this month when itdefaulted on a $1.1 million payment to the EDC that was due May 1.The company later paid but only after first delivering a checkthat it acknowledged soon after would not clear. Now the company is again violating its loan agreement with thestate, Chafee said. Under federal law, employers who have at least100 employees and plan to shed at least 50 jobs are required togive a 60-day notice to workers and state unemployment officials.

Bill Thomas, the 38 Studios president, told The Journal that thestate was notified of the layoffs on May 25 because the company wanted our employees to hear it from us first. The 45-year-old Schilling said he stands to lose all the money hesaved while playing baseball, and rejected criticism that he isseeking a public handout. I have done whatever I can do to create jobs and create asuccessful business, with my own income, he said. Fiftymillion dollars, everything I've ever saved, has been put back intothe economy. The $49 million from Rhode Island has been put back inthe economy.

I've never taken a penny and I've done nothing butcreate jobs and create economy. And so how does that translate intowelfare baby? I've tried to do right by people. Chafee has said he wants to help the company succeed, but opposesallowing 38 Studios to receive film tax credits after receiving somuch in state bond proceeds. Jonathan Savage, a business lawyer who is representing Chafee, saidthe state is willing to give up its first position to 38 Studio sassets if that will help attract a private investor.

Schilling said that might help, and he s hoping the company is notfinished. I pray that it s not, he said. We re doing everythingwe can do to make that not be the case.

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