Lenders have filed a formal objection to THQ’s recent bankruptcy and sale. According to VentureBeat, a filing from several lenders alleges that THQ’s bankruptcy “was orchestrated to benefit the company’s newest executives and their friends at a financial firm hired to sell THQ.”
That financial firm is Clearlake Capital, which is set to acquire THQ for just over $60 million if the sale is approved by U.S. courts by January 19th (30 days after the announcement last month). According to THQ’s lenders, who previously gave $41 million to THQ (41% of its $100 million loan), the 30 day approval period is too short and does not allow potential bidders enough time to make an offer for THQ’s properties.
In addition to the lenders, United States trustee Roberta DeAngelis issued a formal objection alleging that fees and reimbursements associated with the sale are “excessive” and that Clearlake would have too much control over the sale process. The objection also alleges that THQ's liquidity crisis was "manufactured" as properties could have been sold in order to earn money. As noted by VentureBeat, "the lenders who objected clearly wanted THQ to consider selling off its game properties piecemeal, but Centerview shopped the company as a whole."
Following its initial bankruptcy announcement, THQ was delisted from the NASDAQ stock exchange earlier this week.
We’ve reached out to THQ about the lenders’ objection and will update this story with any comment we receive.
Source: Distressed Debt Investing
Andrew Goldfarb is IGN’s associate news editor. Keep up with pictures of the latest food he’s been eating by following @garfep on Twitter or garfep on IGN.
Source : ign[dot]com
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