[Multi] THQ in talks with a financial sponsor but aren't out of the woods yet

[Multi] THQ in talks with a financial sponsor but aren't out of the woods yet

THQ has been staring down the barrel a lot recently, but perhaps there might be some light at the end of this tunnel. The company has entered an agreement with Wells Fargo Capital Finance in order to protect itself from defaulting on its credit facility.

Eurogamer reports that the agreement with Wells Fargo means that it won't pursue its right against the publisher on its $50 million credit facility and will allow additional loans. The deal will last until the 15th of January, 2013. THQ has also entered negotiations with a "financial sponsor" regarding their financial alternatives. Don't put on those rose-tinted glasses yet though, THQ has warned that “There can be no assurance these negotiations will result in a transaction.”

“We are pleased to have reached an agreement with Wells Fargo,” said Brian Farrell, boss of THQ. “This agreement enables us to continue focusing on bringing our games in development to market.”

“Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”

On top of this a note at the bottom of the statement to the press revealed that Paul Pucino, chief financial officer, has quit the Californian company.

I'm crossing my fingers that THQ can make it through the woods, they've got some good IPs but things are still looking pretty rough.

Written by: Kyran Morrison

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