Receiver appointed to recoup money from 38 Studios
Gov. Lincoln D. Chafee announced this week that attorney Richard J. Land will serve as 38 Studios’ receiver as the governor and the state of Rhode Island work to recoup as many taxpayer dollars as possible. Land has served as a court-appointed receiver for a variety of businesses and has represented clients in all levels of state court in Rhode Island.
“The governor has stated that his top priority is salvaging any and all assets of value to minimize the loss to the Rhode Island taxpayer,” said Tom Carlotto, an attorney representing the state. “I respect the governor’s leadership and take his pledge seriously. We will be aggressive in working to maximize the recovery for the benefit of the taxpayers of this state. This is the first step in a long, multipronged process.”
Land’s appointment was made following a hearing before Judge Mary Walrath in the United States Bankruptcy Court in Delaware. In that hearing, the court was presented with a negotiated resolution involving Rhode Island, the bankruptcy trustee and the bond trustee. Based upon an agreement, the court granted relief for the state to seek a receiver in Rhode Island to take control of the assets of 38 Studios and its related entities.