THQ Liquidation Plan Approved, Publisher is No More - NewsWilliam D'Angelo, posted on 17 July 2013 / 3,756 Views
THQ, the former video game publisher, is no more, according to Bloomberg. Its liquidation bankruptcy plan was approved by a US Bankruptcy Judge Mary F. Walrath. Almost all of the assets were sold off and the proceeds from those sales will be used to pay the creditors.
THQ "has met the burden of establishing that the plan should be approved, and I will confirm it," said Walrath.
THQ had previously hoped to remain in business once the bankruptcy was over by being sold off to Clearlake Capital Group LP. However, that was not successful. When THQ's assets were sold off at auction in January it brought in $72 million. The unsold assets were later sold for $6.6 million.
Despite bringing in $72 million that will not cover all of the debts that are owed. Creditors are expected to get paid between 20 and 52 percent of what they are owed. Creditors are estimated to be owed anywhere from $143 million to $184 million.
However, that amount does not include European subsidiaries which are owed around $107 million. It is not sure whether or not European subsidiaries will be allowed to recover any of their losses.