NEWS - Friday, January 4, 2013


THQ Bankruptcy Drama Continues with Controversy

Creditors don’t expect to get everything they’re owed when a company enters any form of bankruptcy, but THQ’s say they’re getting screwed in the publisher’s arrangement to sell off its assets and start over. Three creditors have filed objections, reports Gamasutra, and so has the government trustee overseeing the bankruptcy.

The creditors allege THQ and the private equity firm Clearlake Capital Group have rigged the sale, ostensibly an open bidding process, to ensure that Clearlake gets all of the company’s assets. They’ve got a problem with THQ’s existing management team staying in control. And they say the whole process has been sped up—and deliberately initiated the week before Christmas—in order to guarantee Clearlake wins out.

All of this, they say, points to a process where THQ and Clearlake are not reorganizing the company in a way that’s as fair to creditors as it is to THQ, which is what the bankruptcy process is supposed to be about. The bankruptcy trustee herself says the sale’s timing, the fees and expenses to be charged to bidders, and minimum overbid amounts called for "may chill bidding." Other than Clearlake’s bid, of course, which gets THQ for $60 million if no one else steps forward.

In short, the creditors want THQ’s assets sold for as much as possible, so they take less of a loss when THQ’s debts are settled. That would involve a process with multiple bidders buying up parts of the company. THQ and Clearlake want to keep everything together in one transaction.

THQ has called Clearlake’s offer an "invest[ment] in a new start for our company," one that allows THQ to finish games like Metro: Last Light and South Park: The Stick of Truth. Clearlake would get the studios, code and game franchises THQ owns and would shoulder the obligations of the contracts it has. (Notably, nothing has been said about the future of the WWE line of games THQ makes, while licensed titles like Stick of Truth have been specifically named as scheduled for completion.)

The creditors have asked the court hearing THQ’s bankruptcy to not approve the bidding procedures it has put forth. This would effectively delay the company’s sale, to Clearlake or anyone.


Source: http://www.kotaku.com

Comments

Site Statistics

Registered Members: 44,314
Forum Posts: 725,652
Xbox One Titles: 1,071
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,640
Member Reviews: 10,339
News Articles: 14,062
Screenshots: 30,706
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Xbox One Assassins Creed Origins
Post by oryanphine
1 Replies, 297 Views

Xbox One S Porsche 919 Hybrid Edition
Post by oryanphine
3 Replies, 332 Views

OG Xbox on Xbox One now live!
Post by Kamshaft
2 Replies, 568 Views

Xbox One S Renault F1
Post by oryanphine
2 Replies, 443 Views

Xbox One S Wolfenstein 2 The New Colossus
Post by oryanphine
1 Replies, 580 Views

Xbox One S Prey
Post by oryanphine
0 Replies, 398 Views

Xbox One S Cuphead
Post by oryanphine
2 Replies, 665 Views

Xbox One S Shadow of War a gagner
Post by oryanphine
0 Replies, 393 Views

I Buy Very Rare XBox 360 Faceplates
Post by Smill
8 Replies, 984 Views

Xbox Wire desormais disponible en francais
Post by oryanphine
0 Replies, 755 Views

Manette Xbox 360 Gamestop Radioactive
Post by oryanphine
1 Replies, 1074 Views

Xbox One Moratl Kombat X sur Ebay
Post by oryanphine
0 Replies, 1031 Views

Console Xbox 360 et faceplate Xbox 360 in package blue
Post by oryanphine
0 Replies, 985 Views

Seagate Fanfest External Drive Scorpio
Post by oryanphine
2 Replies, 1347 Views

Ultimate Game Face
Post by oryanphine
3 Replies, 1219 Views

© 2000-2017 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics