THQ Denied Approval Of Loan, Lose Bid For Quick Bankruptcy Sale

THQ failed to obtain approval of a loan to help fund operations and lost its bid for a quick bankruptcy sale. At a hearing Friday in Wilmington, Delaware, U.S. Bankruptcy Judge Mary F. Walrath ruled in favor of creditors that the sale process didn’t give potential buyers enough time.

“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.

According to a report by Bloomberg, about 10 potential buyers contacted THQ after finding out about the sale from its bankruptcy filing.

THQ, WWE’s video game partner, filed for chapter 11 bankruptcy protection on December 19th with a deal in place to sell most of its assets to Clearlake Capital Group LP in a deal valued at about $60 million.  The company sought approval to hold an auction on January 9th with potential buyers submitting bids by January 8th, followed by a January 10th hearing to approve the sale. Creditors want the process extended by about three weeks.

WWE, an unsecured THQ creditor holing a claim of approximately $45 million, released statements here and here.

Click here for coverage by Bloomberg.

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  • Matt

    I hope EA buys the WWE gaming rights. That would be so much better and finally we can have a reliable online playing field.

    • Rich

      Unfortunately, the gameplay would probably be completely awful.

      • Victor

        I doubt it, EA has been making games forever and they've always been good imo.

        • Will

          WCW Mayhem and WCW Backstage Assault were made by EA and remember how great they were? :)

        • snuggle

          EA made wrestling games before they sucked, that’s why you don’t hear about then thq had done the best job at creating a realistic wrestling game over EA, Akklem, and who ever else has made wrestling games. Thq is to wrestling what Ea is to Madden that’s why nobody has been able to compete with wwe games. Go do the history look it up every wrestling game that has every been invented and thq stands tall one of the few good things that they did before going broke.

    • Michael

      Lol, EA owning the WWE game? no. Best chance is for THQ to sell to Ubisoft.

  • Rhyze Reign

    Just remember though chances are if someone buys THQ or is allowed certain assets that they are probably gonna keep the same developer team for the WWE series.