The Rhode Island Economic Development Corp., whose $75 million loan guarantee two years ago to now-bankrupt 38 Studios LLC has Rhode Island taxpayers on the hook, took a step Monday toward legal action against the video-game company.

The EDC's board, meeting behind closed doors in Providence, voted to establish a litigation subcommittee. In a statement, it called the move "part of the next step of looking into possible legal action related to 38 Studios."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.