THQ Enters Forbearance Agreement With WFCF
THQ Inc. announced that it has entered into a forbearance agreement with Wells Fargo Capital Finance. 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.
“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 the resignation of Paul Pucino, executive vice president and CFO. The company is evaluating its alternatives with respect to the CFO role, and has retained FTI Consulting to assist its finance and accounting team.
THQ Inc. is a worldwide developer and publisher of interactive entertainment software.