Analyst to go before panel on 38 Studios report
May. 13, 2014
PROVIDENCE, R.I. (AP) — An outside firm that predicts Rhode Island's bonds will sink to junk status if the state defaults on the 38 Studios debt is going before a legislative panel.
The House Finance Committee will hear from SJ Advisors on Tuesday.
The Minnesota-based firm says the state's borrowing costs will go up if it defaults and that Rhode Island is better off making the bond payments. The General Assembly last year called for the analysis.
Rhode Island still owes $87 million from the deal that gave ex-Red Sox pitcher Curt Schilling's startup video game company a $75 million state-backed loan. 38 Studios went bankrupt.
House Oversight will hear Thursday from University of Rhode Island economist Leonard Lardaro; Gary Sasse of Bryant University's Institute for Public Leadership; and wealth manager Robert Cusack.