RISDIC Developer Strikes Deal OnDebt

Register now

PROVIDENCE, R. I. - (01/31/05) -- A local developer who owesas much as$25 million to one of the long-failed RISDIC credit unions, hasagreed to pay $6.5 million to settle claims brought by the state'sbail-out agency in order to get the go-ahead to buy the WestinHotel complex in downtown Providence. James Procaccianti toldlawmakers last week he will pay $2.7 million in cash and theremainder in installments, with interest, as settlement of 10 loanshe had owed to Marquette CU, one of 45 credit unions and banks thatwere closed after the chain-reaction failure of Rhode Island Shareand Indemnity Corp. 14 years ago. Procaccianti owed $14.7 millionto Marquette CU, which would have grown to $25 million withinterest, but the state agency known as DEPCO created to clean upthe RISDIC mess, is willing to settle its claims for $2.7 million($6.5 million with interest). The deal must be approved by theRhode Island Convention Authority and state lawmakers.

For reprint and licensing requests for this article, click here.