What has come out in the last day or two is that the management could have been deliberately devaluing the company and sabotaging operations to make it seem much more dire than it is. This in turn allowed them to file for Chapter 11, and for their company to go on sale. The illegal part is that this entire scheme was engineered for one purpose: so Clearlake can buy THQ wholesale at as low a price as possible, and also be freed from any debt the company has. This will allow Clearlake to continue running the company as it is, and keeping all the current THQ management employed, while any debt they owed to creditors no longer exist.
I honestly didn't think it could get worse, but the fact it was never that worse and as such was even worse is pretty fucking...'wow'.