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THQ delays credit crunch, farewells CFO, and courts “financial sponsor”

Tuesday, 20th November 2012 22:50 GMT By Brenna Hillier

THQ has negotiated a solution to its difficulties with creditor Wells Fargo, has entered into a mysterious financial negotiation, and dumped its chief financial officer.

The publisher and Wells Fargo have entered into a forbearance agreement, meaning the latter company has agree not to exercise its rights with respect to THQ’s technical default on a $50 million credit line.

The forbearance agreement is currently expected to end on January 15, 2013, and Wells Fargo will make additional loans to THQ during this period.

Thanks to the delay of several games, THQ still doesn’t have a revenue source lined up for before the forbearance period ends, but announced that has also “entered into exclusive negotiations with a financial sponsor regarding financing alternatives”.

Notably, this agreement may bring about “significant and material dilution to shareholders”. THQ cannot reveal who and what is involved until negotiations are complete, and cautioned that a transaction is not guaranteed at this time. It seems worth mentioning that THQ is not above selling on its licensed properties, having handed over UFC to EA, and also that Ubisoft has made noises about acquiring THQ’s IP; an acquisition is not entirely impossible, either.

To cap the hat trick, THQ also announced the resignation of Paul Pucino, executive vice president and chief financial officer. Pucino has been with the company since 2009. A replacement has not been named, although THQ has retained FTI Consulting to assist its finance and accounting team, and no mention was made of Pucino’s future activities.

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9 Comments

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  1. Pytox

    I hope they don’t go bankrupt, I like the games they make

    #1 1 year ago
  2. DSB

    That’s a bandaid on top of a bandaid on top of an open skull fracture.

    I’m amazed that no one has targeted Farrell at any point. Do THQs investors really love having their money taken away like that?

    #2 1 year ago
  3. Hunam

    I honestly can’t see too much in their future. Which is a shame.

    #3 1 year ago
  4. Telepathic.Geometry

    Jesus, the spambots coming in as lone internet assassins was bad enough, but now we come in teams to gang-rape our threads? Or are they rivals? Will they turn on each other?

    #4 1 year ago
  5. OlderGamer

    Crazy shit isn’t it TG? I was posting, guess I will just go do something else for a bit. I can’t fight em, the site needs a way for users to bury posts with thumbs down or something so we users can take care of spambots. Then again if users could bury posts, mine might never get read!! lol.

    #5 1 year ago
  6. Telepathic.Geometry

    Man, I wish I had a ban hammer, as I tend to be posting at times when most of the forum is asleep, and then I receive the full brunt of the spam-rape. If I tried to bury the spambots, I’d probably be flagged for spam meself and get Pat’s mighty gold-plated apocalyptic ban-hammer of doom to the ball-sack. And you don’t want that…

    #6 1 year ago
  7. Stephany Nunneley

    I cleaned them off the system. For now. Apologies for the annoyance.

    #7 1 year ago
  8. Telepathic.Geometry

    Not to worry Steph, they are legion, so it’ll never be perfect. d-(^-^)

    #8 1 year ago
  9. IL DUCE

    As long as Metro Last Light makes it out, I could care less about THQ…also would like to see what Crytek is doing with Homefront 2 though, and that Turtle Rock FPS…but really Metro is the only game I’m really looking forward to from them

    #9 1 year ago