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THQ Negotiating with Financial Organization

Video game publisher THQ Inc. is in negotiations with a financial organization regarding financial alternatives for the struggling company. The Agoura Hills-based business would not disclose the identity of the organization, the structure of size of the deal or when the deal would occur. The deal, however, may result in significant and material dilution to shareholders, the company said. The financial alternatives will transition the company into its next phase, THQ Chairman and Chief Executive Brian Farrell said. Earlier this month, THQ said it hired Centerview Partners LLC in New York to assist in evaluating additional financing in order to meet its game release calendar, which it pushed back THQ also announced that it reached an agreement with Wells Fargo Capital Finance LLC to delay until January exercising its rights and remedies against THQ in connection with a default on loans taken out by the company. THQ borrowed $21 million of the credit facility of which $5.6 million has been repaid. “We are pleased to have reached an agreement with Wells Fargo,” Farrell said in a prepared statement. “This agreement enables us to continue focusing on bringing our games in development to market.” Finally, THQ announced the resignation of Executive Vice President and CFO Paul Pucino. The company has retained FTI Consulting to assist its finance and accounting team.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.
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