THQ stock fell 55 percent last week due to poor financial results, hitting a low of around $1.10. However that is not the worst news coming from the company, which has defaulted on part of a $50 million credit loan from lender Wells Fargo.
While THQ wouldn't clarify on the exact number it has failed to pay back, the report did say "loan availability on the Credit Facility was less than 12.5% of the maximum revolver amount." Wells Fargo continues to fund THQ's requests while the two companies work out terms of their credit agreement.
THQ had missed the date to report on its financial results and has been given a five day extension. THQ said the following to Polygon: "Today THQ filed a notification for a five-day extension to file our quarterly report (10-Q). The delay in the filing of our 10-Q has been caused by certain issues under the terms of our credit agreement with Wells Fargo."
"We are in discussions with Wells Fargo and believe we will reach an agreement with them to resolve these issues. Wells Fargo has continued to fund requests from us while we attempt to reach an agreement. We expect to file our 10-Q within the five days, on Tuesday, November 13, as required by the SEC."