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RI gov: Schilling's wrong to blame woes on state

May 29, 2012 03:41 PM

By The Associated Press

PROVIDENCE, R.I. — Rhode Island’s governor said Tuesday that former Red Sox pitcher Curt Schilling is wrong to blame the state for any of his video gaming company’s financial woes and to accuse the state of broken promises.

Gov. Lincoln Chafee disputed Schilling’s assertion that he had damaged the company by making public comments about its financial troubles, telling The Associated Press that is ‘‘not accurate.’’

In his first public remarks on the company’s problems, Schilling told The Providence Journal for Tuesday’s editions that Chafee’s recent remarks that the state was trying to keep his company solvent were ‘‘devastating.’’ He said that shortly after those comments, a video-game publisher pulled out of a $35-million deal to finance a new game.

‘‘The governor is not operating in the best interest of the company by any stretch, or the taxpayers, or the state,’’ Schilling told the newspaper. ‘‘We’re trying to save this company and we’re working 24/7. The public commentary has been as big a piece of what’s happening to us as anything out there.’’

Schilling also said the state promised and did not deliver film tax credits for 38 Studios and refused to allow the company to defer a $1.1 million payment to the Economic Development Corp., forcing it to miss payroll on May 15.

Chafee would not offer details about the tax credits but disputed Schilling’s account. A message left for Schilling was not immediately returned Tuesday.

He also told The AP he’s more interested in protecting Rhode Island taxpayers than in responding to Schilling’s claims.

38 Studios, which was lured to Rhode Island from Massachusetts in 2010 with a $75 million loan guarantee from the EDC, laid off its entire workforce last week, including about 300 employees in Providence and more in Maryland. The state would likely be responsible for some of 38 Studios’ debts should it collapse.



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