THQ Defaults on Loan, Troubles Continue

by William D'Angelo, posted on 12 November 2012 / 5,305 Views

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."


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8 Comments

Tridrakious (on 12 November 2012)

Jason Rubin has his hands full.


Heavenly_King (on 12 November 2012)

:(


sethnintendo (on 12 November 2012)

Watch out! The lender is Wells Fargo. If they were just an average Joe they would hit them with huge fees, interest, and rights to their first born child.


Slimebeast (on 13 November 2012)

Game over.


cusman (on 13 November 2012)

Not much equity left in THQ stocks... they will either get bought out by another full or end up in an asset sale at this point.


ghettoglamour (on 12 November 2012)

And it all began when they decided to spend insane amounts of money on advertising a mediocre military shooter...It's sad it could destroy a whole publisher, but I'm kinda glad that making a cheap COD-clone isn't a no-brainer money printing machine.


SecondWar (on 12 November 2012)

Homefront actually could become a good IP, it just didn't differentiate itself.


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DanneSandin (on 12 November 2012)

daaaamn! That's even worse than Sony :O


Tridrakious (on 12 November 2012)

Jason Rubin has his hands full.