Records reveal bond buyers for Schilling's company

Records show USAA, Transamerica bought most of the $75M bonds for Schilling's failed company

Associated Press

PROVIDENCE, R.I. (AP) -- Two large corporations bought most of the $75 million in bonds backed by Rhode Island taxpayers on behalf of former Red Sox pitcher Curt Schilling's failed video game company.

Documents obtained by WPRI-TV (http://bit.ly/ZsdpkJ ) show insurer USAA bought nearly $36 million of the 38 Studios bonds and financial services firm Transamerica Corp. bought about $19 million.

Rhode Island's Economic Development Corp. board approved the loan guarantee in 2010 to lure 38 Studios to Providence from Massachusetts. The company went bankrupt last year, leaving the state on the hook for some $100 million to the bondholders.

State lawmakers are considering plans to not pay the bondholders, but Gov. Lincoln Chafee insists the state must honor its debts. Some officials note that the bondholders are insured against their losses.

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