http://finance.yahoo.com/news/thq-provides-credit-facility-announces-222300550.html
THQ Inc. (
THQI) announced today that it has entered into a forbearance agreement with Wells Fargo Capital Finance, LLC. Under the agreement, Wells Fargo has agreed to forbear from exercising its rights and remedies against THQ and its subsidiaries with respect to previous events of default under its credit facility. The period of the forbearance currently extends to January 15, 2013, during which time Wells Fargo has agreed to make additional loans to the company subject to the terms and conditions of the forbearance agreement.
Additionally, THQ announced that it has entered into exclusive negotiations with a financial sponsor regarding financing alternatives which may result in, among other things, significant and material dilution to shareholders. Information concerning the identity of the sponsor, deal size, structure and/or timing will not be disclosed until such time negotiations have concluded. There can be no assurance these negotiations will result in a transaction.
“We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market,” said Brian Farrell, THQ’s Chairman and Chief Executive Officer. “Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
THQ also announced today the resignation of Paul Pucino, Executive Vice President and Chief Financial Officer. The Company is evaluating its alternatives with respect to the Chief Financial Officer role, and has retained FTI Consulting to assist its finance and accounting team.
“We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavors,” commented Farrell.
http://venturebeat.com/2012/11/20/t...potential-financing-alternatives-cfo-resigns/
THQ is in shambles, but it’s making moves to keep its developers’ doors open.
The publisher announced today that it’s chief financial officer, Paul Pucino, has resigned.
“We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavor,” said THQ chief executive officer Brian Farrell in a press release.
This news came coupled with an announcement that THQ has entered into an agreement with Wells Fargo, which owns the publisher’s debt, that will prevent the bank from taking harsh actions against THQ through January 2013. In that time, Wells Fargo will additional loans to the Saints Row The Third publisher.
“We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market,”said Farrell. “Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
Said “financial alternatives” may come as a result of exclusive negotiations that THQ is in with an unnamed financial sponsor. The identity of this mysterious entity will remain shrouded until the two companies end negotiations. THQ is warning investors that the results of these talks made end in the significant dilution of the corporation’s stock.
THQI is currently trading at $1.25 on the NASDAQ.