Thu, Jan 03, 2013 | 22:28 GMT
THQ creditors, Trustee call shenanigans on quick sale of assets
THQ’s proposed sale to stalking horse Clearlake Capital Group has not gone down well with interested parties.
As reported by Distressed Debt, there have been two separate objections to THQ’s sale to Clearlake.
The first comes from US Trustee Roberta DeAngelis, whose task it is to oversee THQ’s bankruptcy, who says that the proposed sale is too soon too allow other potential buyers a look in.
Legally, bidding procedures must allow any and all creditors to take part, and DeAngelis said the sale seemed to have been scheduled at Clearlake’s convenience, as it is providing credit to THQ during its bankruptcy processalong with Wells fargo.
DeAngelis also pointed out a couple of other peculiarities – excessive fees and overbid procedures – which would likely deter anyone but Clearlake from making the deal.
The creditors themselves also filed an objection to the sale, this time criticising the deal’s insistence on selling off THQ’s assets as a job lot. The creditors argue that purchasers should be able to bid on individual assets, which could result in greater profit but would ruin any chance of a “rescue” purchase of THQ’s operations as a whole.
Taken together, the objections suggest creditors fear they and other potential purchasers being muscled out by a sweetheart deal between THQ and Clearlake.
The terms of the proposed purchase of THQ’s assets by Clearlake involve an aggregate contribution of $60.5 million plus a takeover of all THQ’s debts and liabilities.