THQ Files For Bankruptcy! (Details + Statement)

[Smacktalks]

THQ today filed for voluntary bankruptcy in the US, with their shares falling another 12% today before they were halted, meaning the shares have fallen 84% in the past year.

THQ listed assets worth $204.8 million and a debt of $248.1 million and agreed to sell the majority of it's US assets that include it's publishing operation and four studios to affiliates of the investment firm Clearlake Capital Group, however the foreign operations which include Canada are not included in the filings.

So far THQ have been quick to announce that there will be no redundancies, but the shares have been removed from the stock exchange. Filing for bankruptcy effectively wipes out THQ's debts, with the company still up for sale, meaning someone could still come in and buy the company.

In regards to the games currently in development, they're going to continue to be developed and released as planned, meaning it's pretty much business as usual.

Here's the official statement from THQ:

"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."

"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."

So to sum things up, not a lot is affected as of yet in regards to the development of the upcoming games and the next WWE game, which although there hasn't been any official announcement, it's safe to presume it will be WWE '14 sometime next November.

Other games currently being developed by THQ include South Park: The Stick of Truth, Company of Heroes 2, Metro: Last Light and Homefront 2, so as of right now all those games are still being developed and will be released as planned.

Source: Smacktalks.org

[brienj]

The kicker at the end, "pending customary Court approval". Nothing is secure for them at this point.

[Spyder78]

With them filing for bankruptcy, what does the future hold for the community creation servers..I am sure they still will release the final DLC pack for WWE 13'. Pretty sure all the refunds that would have to be made would push them to get this out rather then go thru hassles of the refund issue. As for the servers who is gonna put up the money to keep them running surely going bankrupt would put those servers in jeopardy.

Guess we'll have to wait and see as usual.

[Sunny]

You make a valid point there. I knew those servers were in jeopardy a long time coming. THQ has been in this shit for way too long. It's no surprise they ended up in the slammer. I am just glad these new discoveries are being made right now too. At least, I can say I have had fun using textured CAWS and equally making them as well.