I just got a letter from my shares company (I have THQ shares) and I'm not very clever when it comes to big words but it states:
"the board has announced that the company has voluntarily filed petitions for relief under Chapter 11 of the U.S. Bankruptcy code".
So what does this mean? Are they going under? :(
I don't care about my shares/money, I want THQ to survive cos they make my favourite games..
In a nut shell, yes they entering chap 11.
didn't anyone read the news here? they got rescued by a investment group. more or less.
@Krazy yes I read that but this letter literally arrived today with a posted date of 21/12.
It's not bankruptcy in the sense that they're selling everything to pay their debtors though. That's Chapter 7.
Under Chapter 11 THQ gets a certain amount of time under the supervision of a bankruptcy court, to reorganize into a more viable business, in order to pay their debtors off in the long term.
Of course, there's no guarantee that they can turn themselves into a viable business, so I think it's safe to say that if THQ slips up even a little in 2013, it's going to be final.
Based on what I can find out, Chapter 11 usually means the company becomes delisted from the stock exchange, and the shares are made worthless, which I guess leaves the buyer in this case with a chance to start fresh, while the previous shareholders lose everything.
I would expect the letter to make you aware of that, if that's the case. Doesn't it say you're losing your share?
It doesn't explicitly state that, no. Just that I'll be kept up to date with news.
ah okay. Sorry Silk. This must be the shareholder letter. They always get the news at least :(
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