Last night THQ announced that it had entered into a forbearance deal with Wells Fargo, who represents the company's creditors. The deal protects the troubled publisher from any possible legal action from missing payments related to outstanding debt - at least until January 15. The deal also includes provisions that allow the company to get additional funding at a later date, though specifics on that were not disclosed because that part is still being negotiated.
"We are pleased to have reached an agreement with Wells Fargo," said THQ CEO and chairman Brian Farrell. "This agreement enables us to continue focusing on bringing our games in development to market. Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
The company will also have to submit a 13 week financial forecast to Wells Fargo before November 30, and weekly reports. THQ also revealed that it has hired a "mergers and acquisitions consulting firm," which could mean the company could be up on the hunt for a buyer.
On a related note, the head of finance, chief financial officer and executive Paul Pucino, has resigned his position. THQ did not name a replacement for Pucino, but FTI consulting has been retained to assist the publisher's finance and accounting team.
"We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavors," said THQ chairman and CEO Brian Farrell.