THQ Announces Forbearance Deal with Wells Fargo, In Exclusive Talks with Financial Sponsor for Alternatives; CFO Resigns
THQ Inc. (NASDAQ: THQI) announced today that it has entered into a forbearance agreement with Wells Fargo Capital Finance, LLC. 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. Information concerning the identity of the sponsor, deal size, structure and/or timing will not be disclosed until such time negotiations have concluded. There can be no assurance these negotiations will result in a transaction.
THQ also announced today the resignation of Paul Pucino, Executive Vice President and Chief Financial Officer. The Company is evaluating its alternatives with respect to the Chief Financial Officer role, and has retained FTI Consulting to assist its finance and accounting team.
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