The lights are on
The embattled publisher released a statement today announcing an agreement reached with Wells Fargo. The financial institution "has agreed to forbear from exercising its rights and remedies against THQ" for previous defaults on loans made to the publisher.
Wells Fargo could reevaluate its decision to not pursue those nuclear options on January 15, 2013. In the meantime, the company is making additional loans to THQ.
THQ also announced that it has begun "entered into exclusive negotiations with a financial sponsor regarding financing alternatives which may result in, among other things, significant and material dilution to shareholders." That's bad news – THQ could sell off valuable assets or take other action to secure financial relief that has the side effect of tanking its shares' value.
Finally, the press release notes the resignation of THQ chief financial officer Paul Pucino – with no replacement waiting to take over. FTI Consulting will assist THQ's finance and accounting departments moving forward.
Cross your fingers, everyone. I'm no financial analyst, but it's hard to see any sunshine in this news other than what's noted in the headline above.
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*crossing my fingers*
So the guy from 2K was right?
THQ don't let wells fargo screw you like they did me!!!!!
I'm lolling quite hard right now trying to take this in all seriousness and not cry my eyes out.
Good luck and I hope THQ can turn it around. It's hard to bounce back when you lose money, much less when you didn't have the money to lose. I'm all in for The Stick of Truth!
Noooo THQ! Please don't tank! I need a conclusion to the Darksiders series.
That sucks. Hopefully, Darksiders makes it through. Arguably, my favorite Legend of Zelda game since Legend of Zelda. And the sequel, while lacking in the story, made up for it in breadth.
Honestly, I wouldn't be surprised if THQ were to shut down after this year. Their stock has dropped again after their 10:1 reverse split saved them from being delisted, and currently is only $1.25 (meaning before the reverse split, it would have only be worth 12.5 cents per share), which is down from the $5.42 it was after the reverse split. I fail to see a silver lining coming for them. Metro: Last Light looks good, but will not be a massive hit. The South Park RPG may get a lot of attention for its license, but will that convert to sales (especially considering the mediocrity of Obsidian this generation). I just don't see it, and this loan could prove to make things more difficult for THQs IPs to be sold off should they fail, due to Wells Fargo.
:( i really hope they make it through all this its honestly been looking alot better from them game wise theese days too