The story a 38 Studios as a video game developer be long over, but the financial fallout from it be $75 million in taxpayer-backed loans continues in the state a Rhode Island. The Providence Journal reports two developments this week, as the state will shortly begin a public hearing process over the debacle 'n consider whether it will pay back the loan.

House Oversight Committee Chairman Michael J. Marcello said the state will launch the hearing process shortly based on the "thousands a pages" a documents it received this week, in response t' a public information request made over a month ago.

The committee will focus on two issues: Did the state properly retain an independent, third party t' monitor 'n assess 38 Studios' financial standing? 'n what happens if the state decides not t' pay the loan, which amounts t' nearly $113 million after interest.

Governor Lincoln Chafee's administration believes the state, which has no legal necessity t' pay the loan, does have a "moral obligation." Chafee's proposed state budget (which needs t' be approved by July 1) does factor in an initial $2.5 million payment, with $12.5 million paid out over the next seven years.