State Settles Long-Lost RISDIC Debt
State authorities agreed to accept a $6.5 million payment from a local developer to settle some of his outstanding debts from the RISDIC failure.
The deal will allow James Procaccianti and his Procaccianti Group to buy the Westin Hotel complex from the state and proceed with a multi-million dollar renovation project in the downtown.
Procaccianti owed $15 million-now $25 million with interest-to Marquette CU one of 45 credit unions and banks that were taken over after the failure of their private deposit insurer, R.I. Share and Indemnity Corp., in 1990.
The balance of the unpaid Procaccianti loans are now uncollectable because the statute of limitations has expired on those debts, state auditors ruled.
The state was allowed to collect on one $3 million Marquette CU loan, which has grown to $6.5 million since then.