THQ Bankruptcy - some games remain on track though

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Dec 20, 2012.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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    Unfortunately, it was only a matter of time. After struggling for quite some time, publisher THQ has filed for Chapter 11 bankruptcy. That means they've begun the process of selling off all their ass...

    THQ Bankruptcy - some games remain on track though
     
  2. kanej2007

    kanej2007 Ancient Guru

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    Good to hear the following games are still in production & WILL be released despite the bankruptcy of the company:

    South Park, Company of Heroes 2, Saints Row 4, Metro: Last Light.

    Looks like it's the LAST Metro we get, I hope it's worth the wait...

    Also looking forward to Saints Row 4, the third was great.
     
  3. Ven0m

    Ven0m Ancient Guru

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    That's sad, but I hope the company will find a good owner. They released many quality games and the pricing over here was pretty good too.
     
  4. Khronis

    Khronis Member Guru

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    Sad to see this happen to THQ. Really enjoyed many of their games, and respected them more than other publishers. I only hope relic finds a good home and can keep making games I love.
     

  5. 3dPlayer

    3dPlayer Banned

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    If they launch Company of Heroes 2 will gamers have servers to play the multi-player for a long time?
     
    Last edited: Dec 20, 2012
  6. 3dPlayer

    3dPlayer Banned

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    Does anyone can answer me that?
     
  7. nhlkoho

    nhlkoho Ancient Guru

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    Well since none of us work for them its impossible for us to know that now isn't it. I would assume that if another company acquires the rights to that game then they will have multiplayer servers available.
     
  8. Clouseau

    Clouseau Ancient Guru

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    When dealing with business, just go for the press releases if they are public companies.

    AGOURA HILLS, Calif.--(BUSINESS WIRE)--Dec. 19, 2012-- THQ Inc. (NASDAQ: THQI), a leading worldwide developer and publisher of interactive entertainment software, today announced that it entered into an Asset Purchase Agreement with a “stalking horse bidder,” affiliates of Clearlake Capital Group, L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development. The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology.

    To facilitate the sale, THQ and its domestic business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware. The company’s foreign operations, including Canada, are not included in the filings. The company has obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.

    THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions. All of the company’s studios remain open, and all development teams continue. The company remains confident in its existing pipeline of games. THQ maintains relationships with some of the top independent development studios around the globe. As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts.

    “The sale and filing are necessary next steps to complete THQ’s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ’s deep bench of talent,” said Brian Farrell, Chairman and CEO of THQ. “We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible.”

    According to Jason Rubin, who joined THQ as President last May, “We have incredible, creative talent here at THQ. We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”

    Clearlake has agreed to serve as the “stalking horse bidder” for a Section 363 sale process, which allows other interested parties to come forward with competing bids. Aggregate consideration offered by Clearlake for the purchase totals approximately $60 million, including a new $10 million note for the benefit of the company's creditors. The company is asking the Court for a schedule to complete the sale process in about 30 days.

    Consumers and retailers should see no changes while the company completes a sale. The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval.

    As is the case after a Chapter 11 filing, THQ expects to receive notice from NASDAQ informing the company that its shares will be delisted from the exchange within nine calendar days of notification.

    THQ is being advised by Centerview Partners LLC and FTI Consulting as its financial advisors and Gibson, Dunn & Crutcher as legal counsel. Clearlake is being advised by DLA Piper as legal counsel.

    For additional information about THQ, please visit www.thq.com. For information regarding the Chapter 11 case, please visit www.kccllc.net/thq.

    About THQ

    THQ Inc. is a leading worldwide developer and publisher of interactive entertainment software. The company develops its products for all popular game systems, personal computers, wireless devices and the Internet. Headquartered in Los Angeles County, California, THQ sells product through its network of offices located throughout North America and Europe. More information about THQ and its products may be found at http://www.thq.com.

    About Clearlake Capital Group

    Clearlake Capital Group, L.P. is a private investment firm focused on special situations and private equity investments such as corporate divestitures, recapitalizations, buyouts, reorganizations, turnarounds and other equity investments. Clearlake seeks to partner with world-class management teams by providing patient, long-term capital and operational expertise to invest in dynamic businesses. Clearlake currently manages approximately $1.4 billion of equity capital, and Clearlake’s founding principals have led over 50 investments totaling more than $2.7 billion of capital in sectors including business services, communication, consumer products/retail, defense/public safety, energy/power, healthcare, industrials, media, and technology. For more information, please visit www.clearlakecapital.com.

    THQ Inc. Caution Concerning Forward-Looking Statements

    This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as "THQ"), including, but not limited to, expectations regarding the agreement with Clearlake and the bankruptcy case. These statements are based upon management's current beliefs and certain assumptions made by management. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the adverse impact of the bankruptcy case on THQ’s business, financial condition and results of operations, including its ability to maintain customer and supplier relationships, THQ’s ability to obtain bankruptcy court approval in connection with the bankruptcy case, the actions of THQ’s creditors and other third parties with interests in the bankruptcy case, competitive, economic, legal, political, and technological factors affecting our industry, operations, markets, products, or pricing. Readers should carefully review the risk factors and the information that could materially affect THQ's financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal period ended March 31, 2012 and subsequent Quarterly Reports on Form 10-Q, and particularly the discussion of trends and risk factors set forth therein. Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
     
  9. krakjen

    krakjen Active Member

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    CoH2 use p2p matchmaking like DoW2, so not dependant on servers.
     
  10. Zboe

    Zboe Master Guru

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    If they were that great, they wouldn't be in this mess in the first place.

    I bought the humble bundle for a buck and gave that to charity. The only game I sorta like is CoH and I already had SR3 (paid full price for that when it came out) which I enjoyed but I never did/refuse to buy any DLC for it or any other game for that matter.

    Metro gameplay sucks but makes a decent benchmark, The storyline in Darksiders is terrible and the controls are not very good, Red Faction is fun until the novelty of the hammer wares off and I never did like warhammer (any version) unless it's a LAN game and even then it's far too restrictive.

    I guess when it comes down to it, if THQ folded up tonight the only thing I would miss is not having another Saints Row. Bleh.
     

  11. alanm

    alanm Ancient Guru

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    Supreme Commander. Hope that gets picked up by another game studio and continued. Love to see an SC3.
     
  12. HonoredShadow

    HonoredShadow Ancient Guru

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    WOW. Congratulations on really supporting charity... :puke2:
     
  13. tsunami231

    tsunami231 Ancient Guru

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    never like anything thq made, not since i acutal was into wrestling and that been long time and even then I thought all the good wrestiling game still came out of the n64 think it was AKI made those games right.

    SC was rather nice but i never liked the ui in it not sure if it was ever fixed.
     
  14. Clouseau

    Clouseau Ancient Guru

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    HIGH-DEF DISC NEWS


    Day of the Jackal: Ubisoft Bids on THQ
    Wed Dec 26, 2012 at 09:30 AM ET
    Tags: THQ, Ubisoft (all tags)

    MCV reports that Ubisoft is looking for a "bargain buy."

    Holidays or no holidays, THQ has made its largest play to date to stave off oblivion with its recent Chapter 11 filing. In so doing, THQ also managed to secure capital from would-be owners Clearlake investments.

    As THQ continues to develop games, the removal of the publisher's $100 million debt is part and parcel of a 'stalking horse bid' process. MCV is reporting that pursuant to Ubisoft's goal of becoming the market's No. 1 publisher, the French firm is looking to acquire THQ in one form or another. MCV further describes Ubisoft as "prepared to hold-out until THQ is forced to sell off specific assets, as happened to now-defunct Midway when it went into bankruptcy four years ago."

    Source: MCV

    http://www.highdefdigest.com/news/show/Ubisoft/THQ/Day_of_the_Jackal_Ubisoft_Bids_on_THQ/10807

    No local creditors among largest claims against THQ
    Thu, 12/27/2012 - 10:00am | Don Dodson

    CHAMPAIGN — The Chapter 11 bankruptcy filings by video game studio Volition Inc. and its parent company, THQ Inc., show dozens of local creditors — but none among THQ's 40 largest unsecured claims.

    Volition, which employs about 200 at its headquarters in Champaign, made the filing Dec. 19 in concert with THQ's filing, as did three other THQ subsidiaries. The cases have since been consolidated.

    Chapter 11 bankruptcy allows companies to reorganize their debts, unlike Chapter 7 bankruptcy, in which companies liquidate their assets.

    THQ is seeking a sale of its business, ostensibly to affiliates of Clearlake Capital Group. In the meantime, THQ has said it plans to continue operating its studios as usual, with no reductions in workforce.

    THQ said the filing would let it shed certain obligations and emerge with backing from a new owner with experience in software and technology.

    Volition's filing said the studio has between 200 and 999 creditors. The studio's assets are estimated between $500,000 and $1 million, while its liabilities are estimated between $1 million and $10 million.

    Volition's filings did not detail the largest claims against the studio but did show the 40 largest unsecured claims against THQ.

    The largest unsecured claim was a $101.9 million claim from Wilmington Trust. Other major unsecured claims against THQ include:

    — World Wrestling Entertainment, $45 million.

    — Yuke's Co. Ltd., Osaka, Japan, $17.8 million.

    — Mattel Inc., $12.75 million.

    — Viacom International, $10 million.

    — JAKKS Pacific, $4 million.

    — Microsoft Licensing, $2.9 million.

    — Starcom Mediavest Group, $2.62 million.

    A 117-page "creditor matrix" filed in the THQ case included dozens of creditors in Champaign-Urbana — many of them employees, but also businesses and state agencies. The amounts owed to those creditors were not listed, however.

    THQ's largest equity holders, according to the filing, are Atlanta-based Invesco Advisers, which owns 10.17 percent of THQ's common stock, and New York-based Brencourt Advisors, which owns 9.84 percent.

    http://www.news-gazette.com/news/living/2012-12-27/no-local-creditors-among-largest-claims-against-thq.html
     
  15. Clouseau

    Clouseau Ancient Guru

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    .Bloomberg

    .THQ Denied Approval of Bankruptcy Sale Process and Loan
    By Michael Bathon - Jan 4, 2013 6:18 PM PT ..

    THQ Inc. (THQIQ), maker of the “Saints Row” and “Company of Heroes” video-game franchises, lost its bid for a quick bankruptcy sale and also failed to obtain approval of a loan to help fund operations.

    U.S. Bankruptcy Judge Mary F. Walrath at a hearing today in Wilmington, Delaware, sided with creditors that said the proposed sale process didn’t give potential buyers enough time. Walrath found the video-game maker’s efforts to market the company for sale before bankruptcy weren’t sufficient for her to allow the aggressive sale process.

    “I have problems concluding that the pre-petition sale process was fulsome,” Walrath told lawyers at the hearing, noting THQ “did not even put out to the public that it was for sale” until potential buyers signed non-disclosure agreements.

    About 10 potential buyers contacted THQ after finding out about the sale from its bankruptcy filing, evidence the marketing “isn’t an adequate substitute for a sales process in bankruptcy,” she said.

    THQ, which sought bankruptcy protection Dec. 19 with an agreement to sell virtually all its assets to Clearlake Capital Group LP in a deal valued at about $60 million, was seeking approval to hold a Jan. 9 auction, according to court documents. The company wanted potential buyers to submit bids by Jan. 8, followed by a Jan. 10 hearing to approve the sale. Creditors want the sale process extended by about three weeks.

    ‘Mortal Kombat’
    Warner Bros. Entertainment Inc., which bought “Mortal Kombat‘‘-maker Midway Games Inc. out of bankruptcy in July 2009, would be interested in evaluating THQ’s assets if the sale process is extended, Howard J. Weg, a lawyer representing the company, said at today’s hearing.

    Creditors also want bidders to be able to make offers for specific game titles, saying it may produce more value than only selling the company as a whole. ‘‘The individual titles may have substantial value’’ and a requirement to buy the whole company ‘‘may depress bids,’’ Walrath said.

    The video-game maker was also seeking approval of a $37.5 million bankruptcy loan at today’s hearing. The loan would need to be paid off by Jan. 15, which the company said supported its quick sale process because it would run out of money and would have no way to pay off the loan without the sale.

    THQ exceeded its original cash flow projections for the first couple of weeks in bankruptcy, giving it more time until it runs out of funds, lawyers said at today’s hearing.

    ‘Need to Talk’
    ‘‘I am not convinced that we are under the gun to have a sale process by the 15th,” Walrath told lawyers. The judge scheduled a hearing for Jan. 7, telling lawyers, “in the meantime I think the parties need to talk.”

    Jeffrey C. Krause, a THQ attorney, said afer the hearing that Walrath wants the lawyers to negotiate over the weekend and the company will have to consult with Clearlake, which is providing part of the bankruptcy loan, to determine how they will proceed.

    THQ listed assets of $204.8 million and debt of $248.1 million in Chapter 11 documents filed Dec. 19. The company said it was forced to seek court protection after sustaining losses for the past five fiscal years.

    Recent losses were tied to its “uDraw” peripheral device for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360 gaming consoles, which let users produce drawings on their television screens. While the uDraw had early success on the Wii, the PlayStation and Xbox versions “fell far short of expectations,” according to court papers.

    “Saints Row,” with more than 11 million units shipped globally, is THQ’s most-successful franchise, according to a May press release. THQ also published the “Darksiders” and “Red Faction” franchises, according to its website.

    The video-game maker said it required more time for some titles and had to delay the March introductions of “South Park: The Stick of Truth,” based on the popular adult cartoon show from Matt Stone and Trey Parker; “Company of Heroes 2” and “Metro: Last Light.”

    The case is In re THQ Inc., 12-13398, U.S. Bankruptcy Court, District of Delaware (Wilmington).

    To contact the reporter on this story: Michael Bathon in Wilmington at mbathon@bloomberg.net

    To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

    http://www.bloomberg.com/news/2013-01-05/thq-denied-approval-of-bankruptcy-sale-process-and-loan-1-.html
     

  16. deltatux

    deltatux Ancient Guru

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    Sometimes Chapter 11 isn't all doom and gloom, for some companies it's really the kick that they need to rebound, and there have been companies who weren't completely sold and survive as a smaller versions as themselves and surge forward.

    Hopefully THQ can do just that.

    deltatux
     
  17. Clouseau

    Clouseau Ancient Guru

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    The refreshing news came from them exceeding their original cash flow projections. The dire picture painted, if believed, would have allowed selling off the US holdings as a whole to a hand picked investor and not piecemeal; drags on too long otherwise. The quick sale would have removed THQ from the public sector completely; not listed anywhere. The IP held by the US arm is probably weighing them down too much debt wise.
     

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