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[Deleted member 102362]

THQ in default with Wells Fargo over $50 million credit facility

Troubled publisher THQ dropped more potentially bad financial news on Friday, revealing that it was in "certain defaults" on a $50 million credit facility with lender Wells Fargo.

The Agoura Hills based publisher of Darksiders, Saints Row and WWE wrestling games wouldn't clarify the conditions of the credit facility it has defaulted on, but did report "loan availability on the Credit Facility was less than 12.5% of the maximum revolver amount," a technical default of the terms of the loan. THQ tells Polygon that Wells Fargo continues to fund its requests while the two parties discuss the terms of their credit agreement.

In a filing with the SEC, THQ says it was notified by Wells Fargo on Nov. 7 that "one or more events of default have occurred under the terms of the Credit Facility, including the failure to comply with financial covenants" for the most recent quarter.

THQ entered into the $50 million revolving credit facility with Wells Fargo in 2011. The company borrowed $21 million from that credit facility during its third quarter, which ended Sept. 30.

Apologies if this should have gone in one of the other THQ threads.

 

[grap3fruitman]

I better get my South Park game. >=(

 

[Tomat]

I have no idea what that actually means.

 

[Jackson]

I have no idea what that actually means.

It's bad.

 

[Macho Madness]

I have no idea what that actually means.

They can't pay the bank.

 

[Cameron122]

no no no no no no

 

[LiK]

gaddammit, someone please save Volition and Saints Row!

 

[zerokoolpsx]

Things just aren't going good for THQ.

 

[pa22word]

Welp, looks like this is it boys.

 

[Liquid_Bike]

They dead.

 

[brumx]

doomed

 

[Glass Rebel]

I will buy Relic for 100$.

Steam name is same as on GAF, I'll paypal you as soon as I receive the gift.

 

[Nirolak]

I have no idea what that actually means.

It means THQ doesn't have enough money to pay their loan bill.

 

[Tomat]

They can't pay the bank.

Then this part seems pretty ridiculous:

THQ tells Polygon that Wells Fargo continues to fund its requests while the two parties discuss the terms of their credit agreement.

Thanks for the explanations.

 

[bounchfx]

surprised it took this long, honestly. I really hope all the great talent they had go somewhere together in one piece.

 

[KevinCow]

I better get my South Park game. >=(

Even if THQ goes under, I'm sure someone will pick that one up.

I'm not sure if anything else is safe, though.

 

[Visualante2]

Company of Heroes 2 and South Park is going to get pushed out the door so hard.

 

[Nirolak]

Then this part seems pretty ridiculous:

The bank is hoping THQ can get debt with someone else so Wells Fargo doesn't lose all its money.

 

[cooljeanius]

Hoping Darksiders II still makes it out for Wii U.

 

[Santiako]

I suspect that Volition, Relic and Vigil are going to get acquired by Bethesda as soon as THQ goes under.

 

[ViewtifulJC]

Naughty Dog guy will save them

Wario64 said so

 

[NZNova]

Even if THQ goes under, I'm sure someone will pick that one up.

I'm not sure if anything else is safe, though.

Shit. I have CoH2 and metro last light preordered, I wonder what's going to happen with them.

 

[Deleted member 102362]

I better get my South Park game. >=(

I want my Metro: Last Light very badly.

 

[reptilescorpio]

Well now, that is the worst news aside from them shuttering the doors today.

 

[Lonely1]

Darksiders II is going to sell 100M copies on Wii U and save the company!

 

[KevinCow]

Hoping Darksiders II still makes it out for Wii U.

That's like next week, so I'm sure the discs are already printed and packed and ready to ship.

 

[The Grim Heaper]

someone heroic save volition please

and publish south park

 

[Tomat]

The bank is hoping THQ can get debt with someone else so Wells Fargo doesn't lose all its money.

So Wells Fargo is giving them money hoping they'll get debt with someone else?

I think I'm still misunderstanding something here.

 

[MikeE21286]

gaddammit, someone please save Volition and Saints Row!

Oh they'll be saved just not by THQ.

 

[SafeinSound]

Any day now .

 

[Eusis]

That's like next week, so I'm sure the discs are already printed and packed and ready to ship.

And likely THQ was already paid for the discs.

... Yeah, Darksiders 2 has to be epically successful to be of any use, and that'd be after moving debt around I guess.

 

[CheesecakeRecipe]

That plug is getting inched closer and closer to coming yanked out.

 

[Nirolak]

So Wells Fargo is giving them money hoping they'll get debt with someone else?

I think I'm still misunderstanding something here.

Sorry, I wasn't quite clear.

Wells Fargo is hoping someone is dumb enough to invest in THQ so THQ can pay off the loan, since otherwise Wells Fargo will lose almost everything they loaned THQ.

 

[Tomat]

Sorry, I wasn't quite clear.

Wells Fargo is hoping someone is dumb enough to invest in THQ so THQ can pay off the loan, since otherwise Wells Fargo will lose almost everything they loaned THQ.

No problem, I get it now. Thanks.

 

[GamerSoul]

Sorry, I wasn't quite clear.

Wells Fargo is hoping someone is dumb enough to invest in THQ so THQ can pay off the loan, since otherwise Wells Fargo will lose almost everything they loaned THQ.

ouch

 

[ezekial45]

So if it were up to you guys, which publisher would be best for any of THQ's properties? Saint's Row and Red Faction should go to WB Games, and Darksiders should end up with SE. Those be a great fit for them.

 

[Baconsammy]

I get the feeling Darksiders 2 Wii U is the last we'll see of them.

That's like next week, so I'm sure the discs are already printed and packed and ready to ship.

Yep, it'll come out. The only question will be if there's a problem, will anyone be around to patch it. Kingdoms of Amalur fans know all about that.

 

[Fox Mulder]

That sucks.

Red Faction Guerrilla and Saints Row 3 are two of my favorite games this gen. I never got around to Darksiders, but I hear that was fun too.

Hopefully someone can buy the talented studios before their talent leaves for more sable positions. I'd love for volition to keep going.

 

[LiK]

Sorry, I wasn't quite clear.

Wells Fargo is hoping someone is dumb enough to invest in THQ so THQ can pay off the loan, since otherwise Wells Fargo will lose almost everything they loaned THQ.

that was a really nice explanation.

 

[Lonely1]

Sorry, I wasn't quite clear.

Wells Fargo is hoping someone is dumb enough to invest in THQ so THQ can pay off the loan, since otherwise Wells Fargo will lose almost everything they loaned THQ.

Sounds like a sound investment. Can we kickstart THQ?

 

[Master Thespian]

EA WWE 2014?

 

[Neuromancer]

Assy

 

[malfcn]

Are baboons running THQ?

 

[GavinGT]

Are baboons running THQ?

Jason Rubin

 

[ezekial45]

Jason Rubin

This is karma for firing all those people at Relic and Vigil during E3.

EDIT: Oh shit, this means that Warhammer 40K Dark Millenium is probably done for.

 

[sankao]

Could Obsidian kickstart South park ?

 

[KAP151]

EA WWE 2014?

Christ I hope not.

 

[Glass Rebel]

So if it were up to you guys, which publisher would be best for any of THQ's properties? Saint's Row and Red Faction should go to WB Games, and Darksiders should end up with SE. Those be a great fit for them.

I pretty much agree with this but I also want Relic to go to SE.

 

[brumx]

They will release at least 1 more WWE game lol.

 

[ChosenPredator]

I'm interested because maybe WWE will finally go to someone who can make good wrestling games.