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Wells Fargo, THQ Reach Temporary Loan Agreement

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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Comments
  • This hopefully means that THQ will finally begin making legit games again.. I've missed their creative minds
  • So what exactly does this mean for THQ?
  • *crossing my fingers*

  • So they can hold out until... what exactly? Nothing in their current release lineup is big enough to get them out of this mess, DS2 was meant to be their salvation. Unless they can pull out SR4, I'm not sure how THQ gets out of this situation.
  • I'm confused, if THQ isn't being forced to pay back the loan now and is being loaned additional money, isn't that good for the company? Talking to financial sponsors is also a good thing isn't it? The way I read it is that they'll trim the excess stuff from THQ that's not making money, I still see an optimistic future for valued properties like Saints Row and Company of Heroes. Why is Adam so pessimistic?
  • So the guy from 2K was right?

  • +1 for THQ. +1 for Wells Fargo
  • Metro Last Light is going to have to release soon, and be more than the sleeper hit that 2033 was. Also, they really should consider Destroy All Humans! If they go all out with that game (unlike what they did with PoF) and add the strong multiplayer component I know can exist for that game, they'll be back in the game.
  • THQ don't let wells fargo screw you like they did me!!!!!

  • Hopefully, this means THQ's long deserved death is well at hand.
  • 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

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