THQ finds sponsor, works out deal with bank, loses CFO

Angry Cartman
Nov
21

THQ finds sponsor, works out deal with bank, loses CFO

thq logo 300x180 THQ finds sponsor, works out deal with bank, loses CFOFinancially troubled games publisher THQ made a whirlwind of announcements Wednesday that appear to give it more time to straighten out its money situation. Of course, the number one thought on the mind of most gamers is still, “How does this affect South Park: The Stick of Truth, Company of Heroes 2 and Metro: Last Light?”

After going into technical default over a line of credit with Wells Fargo, the good news is that THQ has found a financial sponsor  to infuse some cash into the publisher and worked out an arrangement with the bank to catch up on the payments and also receive additional loans. The forbearance agreement requires the company to show that it can make good on its promises by January 15, 2013, however.

Details on the mysterious financial sponsor have not been revealed as THQ and the sponsor are still in negotiations. With no new games planned for release until March of 2013, president Jason Rubin needs an infusion of short-term cash to keep the company that he was brought in to save afloat.

The bad news is that Paul Pucino, Executive Vice President and Chief Financial Officer, has resigned amid all of the turmoil. Details on his departure such as whether he was forced out or left at his own discretion are unknown. Outside consulting firm, FTI Consulting,  will take the lead on the company’s finances until a replacement can be found.

THQ’s stock price plummeted following a surreal end of quarter earnings call where Rubin announced the slight delays of South Park: The Stick of Truth, Company of Heroes 2 and Metro: Last Light followed by the withdrawal of its financial guidance and then refused to take questions.

About Scott Grill

Scott is one of those “weird” over 30 gamers who’s been around since before the days of the Atari 2600 and has been pounding on controllers and keyboards ever since. Sharing his passion of gaming with his two kids and friends put him on a writing kick that he hasn’t been able to shake off.

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