THQ Dodges Credit Default But Loses Chief Financial Officer

THQ Dodges Credit Default But Loses Chief Financial Officer

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The latest news to come out of THQ is a little bit good, and a little bit bad.

THQ announced today that it has entered into a "forbearance agreement" with Wells Fargo Capital Finance, under which Wells Fargo has agreed to put off "exercising its rights and remedies against THQ and its subsidiaries with respect to previous events of default under its credit facility." That mouthful of fun relates to an SEC filing earlier this month in which THQ revealed that it had defaulted on its credit facility, leading to negotiations between the two companies which ultimately culminated in a decision by Wells Fargo to not drop the hammer. The deal extends to January 15, 2013, during which time Wells Fargo will make further loans, "subject to the terms and conditions of the forbearance agreement," to help keep the lights on at THQ.

"We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market," THQ Chair and CEO Brian Farrell said in a statement. "Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase."

That's the good news. The bad news is that Executive Vice President and Chief Financial Officer Paul Pucino has left the building, which I don't think is ever a good sign for companies struggling to avoid financial collapse. "We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavors," Farrell said. THQ is now considering replacements, and in the meantime has hired a consulting firm to step into the breach.

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At this point and time, I'd say that THQ is close to going away. Hope for the best, but prepare for the worst type of scenario.

And sadly, THQ is really one of the better publishers in regards to treating its customers. I am peeved that they did the EA situation by making SR3 unplayable multiplayer wise unless you buy it, but for a financially ruined company it's understandable. And really, the games right now THQ are doing need to come out within the next two months for them to survive it seems.

If THQ goes, then we'll be stuck with just crappy publishers as who we get our games from. And I will not like that one bit.

I now have a mad urge to invest $500 in THQ stock, because they're updates are so brutal that I can see them actually recovering. No risk, no reward, you know?

It's fairly depressing to watch, though. They aren't being dragged through the mud at this point, they have BECOME mud.

Poor THQ it's always 1 step forward 1 and half steps back.

I hope they get some generous donations in the upcoming THQ Humble Bundle.

For the love of god, whatever happens, just finish the South Park game first!

As long as company of heroes 2 ships....

LordOfInsanity:
At this point and time, I'd say that THQ is close to going away. Hope for the best, but prepare for the worst type of scenario.

And sadly, THQ is really one of the better publishers in regards to treating its customers. I am peeved that they did the EA situation by making SR3 unplayable multiplayer wise unless you buy it, but for a financially ruined company it's understandable. And really, the games right now THQ are doing need to come out within the next two months for them to survive it seems.

If THQ goes, then we'll be stuck with just crappy publishers as who we get our games from. And I will not like that one bit.

I respectfully disagree on THQ treating its customers well since it started the online pass junk we have to deal with for majority of games now. I'm glad to see that karma has rewarded all the BS they pushed on gamers.

anyone know if they are having any big releases between now and the 15th of January?

Hang in there THQ, you need to release Company of Heroes 2 and return the franchise to its former glory.

GAunderrated:
I respectfully disagree on THQ treating its customers well since it started the online pass junk we have to deal with for majority of games now. I'm glad to see that karma has rewarded all the BS they pushed on gamers.

Having policies you disagree with doesn't warrant a company's shutdown. Hell, maybe THQ needs the online passes because of its financial situation.

Nouw:
Hang in there THQ, you need to release Company of Heroes 2 and return the franchise to its former glory.

GAunderrated:
I respectfully disagree on THQ treating its customers well since it started the online pass junk we have to deal with for majority of games now. I'm glad to see that karma has rewarded all the BS they pushed on gamers.

Having policies you disagree with doesn't warrant a company's shutdown. Hell, maybe THQ needs the online passes because of its financial situation.

Actually having policies that I don't agree with as a customer is a great reason for a bad company to shutdown. Make bad policies, have angry customers, lose support, go bankrupt. Seems like a pretty straightforward pattern to me. I will feel bad for all the workers who will lose their jobs but I can't help but feel this is karmic payback.

I sincerely hope they turn things around; I want to see Vigil wrap up the Darksiders story. Is Jason Rubin still on board? That's one man who should know how to run a successful game company.

GAunderrated:
Actually having policies that I don't agree with as a customer is a great reason for a bad company to shutdown. Make bad policies, have angry customers, lose support, go bankrupt. Seems like a pretty straightforward pattern to me. I will feel bad for all the workers who will lose their jobs but I can't help but feel this is karmic payback.

Perhaps so, but in this context I don't think it is reason enough.

Online passes weren't something people most people found terrible enough to warrant a company's shut down. THQ could actually justify having them, because of their financial situation. I just don't think online passes are big of a deal enough for enough people for it to be the reason for a company's failure.

lacktheknack:
I now have a mad urge to invest $500 in THQ stock, because they're updates are so brutal that I can see them actually recovering. No risk, no reward, you know?

It's fairly depressing to watch, though. They aren't being dragged through the mud at this point, they have BECOME mud.

Call options. Best money you'll ever make.

-Dragmire-:
For the love of god, whatever happens, just finish the South Park game first!

acosn:
As long as company of heroes 2 ships....

Add in Metro: Last Light as well for me.

Out of all the releases next year 3/4 of the ones I want are from THQ.

I hope they can at least get them out before going down.

Here's hoping it sorts itself out. I really don't want these guys to go under.

Ed130:

-Dragmire-:
For the love of god, whatever happens, just finish the South Park game first!

acosn:
As long as company of heroes 2 ships....

Add in Metro: Last Light as well for me.

Out of all the releases next year 3/4 of the ones I want are from THQ.

I hope they can at least get them out before going down.

Yep. That's my top 2 games I'm looking forward to in CoH2 and Metro: LL hanging in the balance. I'm doubtful as to whether they'll be out though. They wouldn't be so worried if they had a chance of a release, which would presumably boost their stock.

THQ seems to be doing DIFFERENT games, all i see these days is CoD, Halo, MW, BF BOOOOORRRD OF that crap. THQ upcoming games are what im wanting. Company of Heroes 2, South Park, Metro, And hoopfully Dawn of War 3. Who the hell else has such a interested mixed genre of great looking games coming out ? No one, they are all too busy milking there popular games.

acosn:
As long as company of heroes 2 ships....

yeah, this is starting to sound like a Mass Effect 3 style "desperate holdout" for that game to come and swoop in and save their asses.

Godspeed THQ. if i had any money to give you, it would be in your pockets yestserday

Damn, they have three games in the works and I have fully plans on buying all three. But, since Wells Fargo decided to not exercise their rights, I'm hoping this means they are going to be lent more money to stay afloat. On the other hand, Wells Fargo could wait till the games come out and start exercising those rights. They are some of the biggest vultures around when it comes to circling something that's about to die.

Let's hope that THQ can get through this rough patch they are going through. THQ is one of the gaming companies that I like because their customer support is not crap like other companies.

It'll be a sad day if THQ had to close up shop for good. With what they've produced and with what games are on the line, they really don't deserve to be in the financial situation they're in. Best wishes and best of luck for THQ. I'm rootin' for ya.

THQ is something of an oddball company. They're quite big and for a long time thrived that way based on contracts to release movie tie-ins and other gaming wish-wash. At the same time, they had cultivated a few quality in house IPs. With movie producers wanting more and more to control their tie-in material, THQ lost that portion of their business. Unfortunately, the large corporate culture they created does not yield consistent quality in their IPs. I mean, what was with Red Faction: Armageddon? It was a complete waste of effort. Also, like other large publishers, they aren't terrific at keeping their customers happy with them and they aren't particularly good at keeping their best developer side talent. I'd be interested to see what portion of their annual expenditures is administrative.

It's still salvageable. It's just getting more difficult to do so. Effectively, THQ needs to downsize and find a business partner that can help them focus. Otherwise, we'll be seeing a fire sale on their IPs.

lacktheknack:
I now have a mad urge to invest $500 in THQ stock, because they're updates are so brutal that I can see them actually recovering. No risk, no reward, you know?

It's fairly depressing to watch, though. They aren't being dragged through the mud at this point, they have BECOME mud.

They are updates?

Anyway, this really is what should happen when you fuck up royally. Most companies get off with a slap on the wrist.

Zachary Amaranth:

lacktheknack:
I now have a mad urge to invest $500 in THQ stock, because they're updates are so brutal that I can see them actually recovering. No risk, no reward, you know?

It's fairly depressing to watch, though. They aren't being dragged through the mud at this point, they have BECOME mud.

They are updates?

[inner Grammar Nazi commits seppuku]

Nouw:

GAunderrated:
Actually having policies that I don't agree with as a customer is a great reason for a bad company to shutdown. Make bad policies, have angry customers, lose support, go bankrupt. Seems like a pretty straightforward pattern to me. I will feel bad for all the workers who will lose their jobs but I can't help but feel this is karmic payback.

Perhaps so, but in this context I don't think it is reason enough.

Online passes weren't something people most people found terrible enough to warrant a company's shut down. THQ could actually justify having them, because of their financial situation. I just don't think online passes are big of a deal enough for enough people for it to be the reason for a company's failure.

How do you know what most people think? I'm only speaking for myself as a customer, not on the behalf of millions of people I don't know and claim the majority thinking. It is a bad habit I see on the internet is to speak on behalf of millions and they never even heard their opinion.

I find online passes to be an absolute atrocity and I can name at least a dozen friends I know that think the same as well as many users on the escapist thanks to Jim Sterling tackling the issue. I can't speak for the millions of gamers I haven't met but my point in the post you quoted still stands I just have to clarify when I said policies I meant games included in that statement (wasn't clear my apologies). Judging by how poorly as a company they are doing I still think its their bad policies/games that led to them loosing support.

For myself personally it has to do completely with the online pass BS that they started. EA as evil bastards as they are didn't invent online passes, they only use them the most frequent. THQ put a lot of negative energy out there in the form of online passes. That is why I feel this is karmic payback.

Also if you haven't seen it please check out the video. I found it to be a good watch.

http://www.escapistmagazine.com/videos/view/jimquisition/4568-Online-Passes-Are-Bad-For-Everybody

GAunderrated:
snip

I'm just passing on what I read on these forums and the Space Marine community forums. In both instances it wasn't a case of everyone disagreeing with the practice, as it is usually. It actually divided a few people. I know there are people who detest them, but there are also saying there are people who don't. I suppose in your situation you would deem online passes bad enough for the company to shut down but in mine it is not.

There are over 400 comments on that video and I can't help but understand both sides. Personally, I don't see them as a clear-cut bad practice so I suppose we'll have to agree to disagree. I think other issues THQ had would be more deserving of the title of 'why THQ is failing' but that's me. Perhaps there could be an article or a video on the Escapist as to why THQ is failing so we can assess all their sins and virtues in a karma-like manner, seeing as THQ's days are ending. I'm sure online passes are part of the reason, however small or big its effect may be, but there must be other things as well.

Shit I got to start buying THQ stuff right now, even the stuff that sucks.

Capcha: nul points. FUCK YOU CAPCHA!

 

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