THQ defaulted on $50 million loan during last financial quarter
Ailing publisher THQ defaulted on a $50 million loan from financial services company Wells Fargo during the last financial quarter, ended September 30.
The default was revealed by recent SEC findings, and come after the publisher reported losses of $21 million and called in mergers and acquisitions consultant Centerview Partners to discuss other potential strategies to rescue the company.
While the findings show that THQ defaulted at least once during the period, Wells Fargo continues to fund the company. THQ stated that it was confident that an agreement with the bank can be reached, but under the terms and conditions of the loan, now has to pay back the money with an additional 2 per cent interest.
THQ’s shares dropped drastically last week following its latest earnings call and the news that it planned to delay all games planned for a fourth-quarter release – including Metro: Last Light, pictured – to allow “extra time for polish”. The drop triggered concerns that the company may face bankruptcy before it can reverse its fortunes.