Warner one of five buyers interested in THQ – report

Saturday, 5 January 2013 14:25 GMT By Stephany Nunneley

Warner Bros. Interactive has been cited as a possible buyer for THQ assets, according to a report coming out of the firm’s US Bankruptcy Court proceedings in Delaware on January 4.

According to Distressed Debt, five strategic buyers are interested in acquiring various parts of the embattled publisher, while others are interested in it as a whole.

Lawyers representing Warner Bros. were present during Friday’s proceedings, stating there was “a team ready to complete due diligence if more time is allowed.”

Investment firm Clearlake Capital is currently waiting for stockholder and court approval to purchase THQ, but stockholders argued earlier this week that the 30-day approval window for Clearlake’s purchase wasn’t adequate enough to allow other, potential bidders to submit offers.

Judge Mary Walrath did not approve THQ’s Debtor in Possession motion or the motion for bidding procedures, instead stating that all parties involved will need to “discuss and work out their issues over the weekend.”

She has set a new hearing for Monday, January 7.

Should the DIP motion have been granted, THQ would have been able to remain in possession of its property despite liens issued by creditors or other parties with a security interest.

Creditors of THQ consist of Wilmington Trust, WWE, Silverback Asset Management, Mattel and Viacom.

THQ filed for Chapter 11 bankruptcy in December, and normally when filing Chapter 11, the corporation or business which continues to operate under these proceedings is considered a Debtor in Possession.

Sometimes the DIP can keep its assets should it pay its creditors a fair market value for said assets, even if a different price was noted on a contract.

Hopefully, something can be worked out for all parties involved by Monday.

Via Beefjack.

Thanks, Edo.