Well it has been a busy 24 hours for publisher THQ especially on the financial front. First their Chief Financial Officer, Paul Pucino resigns from the company and then they enter a forbearance agreement within their financial backers with help from Wells Fargo (the company’s lenders).
There is no current replacement for Pucino but FTI consulting has been retained to help with the publishers finance and accounting team, which has left them literally on the brink of bankruptcy. “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.
THQ has entered into a loan forbearance agreement, which for the likes of you and me, means that it prevents lenders from suing for default until January the 15th. This ‘stay of execution’ means that the company has time to find additional funding which they are rumoured to be in talks with a “financial sponsor” that could provide this much needed funding but it is all hush hush at the moment until the deal is concluded.
This deal is certainly good news for THQ, but reveals just how close the publisher is to bankruptcy.