Lenders Accuse THQ Executives Of Orchestrating Bankruptcy
An objection to THQ’s declaration of bankruptcy and sale has been filed by several lenders.
The filing suggests that THQs declaration of bankruptcy was “orchestrated to benefit the company’s newest executives and their friends at a financial firm hired to sell THQ.” In other words, THQ’s recent misfortune is all a sham designed to bring in profit for the higher ups according to the lenders.
Clearlake Capital is the financial firm that are the alleged “friends” of the THQ execs. If the name sounds familiar, it should. They’re the firm that are set to buy THQ for just over $30 million assuming the sale is approved by US courts by the 19th of January. The problem the lenders have is that THQ was given $41 million and that the 30 day approval period is too short and thus prevents anyone else from making a substantial bid on THQ’s assets before Clearlake Capital does. However, the lenders aren’t the only ones to lodge an objection to this issue.
Roberta DeAngelis, a United States trustee alleges that fees and reimbursements associated with the sale of THQs assets are excessive. She also notes that she believes Clearlake Capital have too much control over the sale of THQs properties. She also suggests that this whole incident has been manipulated in a bit to make money with the sale of THQs stock. DeAngelis’s file for objection can be found on Distressed Debt Investing.
This news follows NASDAQ’s recent delisting of THQ from the stock exchange.
George Sinclair is an editor for Analog Addiction, the home of the latest news, reviews and previews. You can follow George on Twitter and his blog on IGN. Don’t forget to follow the OFFICIAL Analog Addiction Twitter!