THQ Embroiled In Legal Controversy With Recent Bankruptcy

It seems like this rollercoaster ride that THQ is on will never end.  Good news is swiftly met with bad and it’s a continuing cycle after that.  With the recent news that THQ has filed for chapter 11 bankruptcy and that their assets were to be purchased by a company called Clearlake Capital, things once again seem to have fallen off the rails for the troubled publisher.  At the time of the deal, everything seemed like a win-win as THQ wouldn’t need to lay anyone off and it would help them pay off their outstanding debts.  Well, it would seem that not everyone is happy about this.  Enter in the creditors.

According to VentureBeat, THQ lenders are objecting to this “fast track” sale and allege that it was orchestrated primarily to benefit executives and friends at a financial firm.  The real issue seems to stem from how THQ is being sold.  They allege that the need to sell assets quickly was manufactured in order to sell the company as a whole rather than selling off properties individually.  The objection also notes that the fees and reimbursements associated with the sale are excessive and also give Clearlake too much control over the sale.

As of this writing, THQ hasn’t responded to these claims.  The biggest gripe seems to be that the lenders feel like this deal was set up to keep THQ operational rather than an effort to pay back it’s debts.  One things for sure, we won’t be without more THQ news for a while at this pace.

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