AGOURA HILLS, Calif.--(BUSINESS WIRE)--Nov. 20, 2012--
THQ
Inc. (NASDAQ: THQI) announced today that it has entered into a
forbearance agreement with Wells Fargo Capital Finance, LLC. Under the
agreement, Wells Fargo has agreed to forbear from exercising its rights
and remedies against THQ and its subsidiaries with respect to previous
events of default under its credit facility. The period of the
forbearance currently extends to January 15, 2013, during which time
Wells Fargo has agreed to make additional loans to the company subject
to the terms and conditions of the forbearance agreement.
Additionally, THQ announced that it has entered into exclusive
negotiations with a financial sponsor regarding financing alternatives
which may result in, among other things, significant and material
dilution to shareholders. Information concerning the identity of the
sponsor, deal size, structure and/or timing will not be disclosed until
such time negotiations have concluded. There can be no assurance these
negotiations will result in a transaction.
“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,” said Brian Farrell, THQ’s Chairman and Chief
Executive Officer. “Meanwhile, we are evaluating financial alternatives
that will transition the company into its next phase.”
THQ also announced today the resignation of Paul Pucino, Executive Vice
President and Chief Financial Officer. The Company is evaluating its
alternatives with respect to the Chief Financial Officer role, and has
retained FTI Consulting to assist its finance and accounting team.
“We would like to thank Paul for his significant contributions over the
past four years and wish him well in his future endeavors,” commented
Farrell.
About THQ
THQ
Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher
of interactive entertainment software. The company develops its products
for all popular game systems, personal computers, wireless devices and
the Internet. Headquartered in Los Angeles County, California, THQ sells
product through its network of offices located throughout North America
and Europe. More information about THQ and its products may be found at http://www.thq.com/.
THQ Inc. Caution Concerning Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations, estimates and projections about the business of
THQ Inc. and its subsidiaries (collectively referred to as "THQ"),
including, but not limited to, expectations regarding negotiations in
connection with potential financing alternatives, of video game console
and software growth, financial guidance, estimated release dates, and
the potential for online gaming. These statements are based upon
management's current beliefs and certain assumptions made by management.
Such forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, including, but
not limited to, business, competitive, economic, legal, political, and
technological factors affecting our industry, operations, markets,
products, or pricing. Readers should carefully review the risk factors
and the information that could materially affect THQ's financial
results, described in other documents that THQ files from time to time
with the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the fiscal period ended March 31, 2012 and subsequent
Quarterly Reports on Form 10-Q, and particularly the discussion of
trends and risk factors set forth therein. Unless otherwise required by
law, THQ disclaims any obligation to update its view on any such risks
or uncertainties or to revise or publicly release the results of any
revision to these forward-looking statements. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release.
Source: THQ Inc.
Investor and Media Inquiries:
THQ Inc. Investor
Relations
Lisa Mueller, 818-871-5125
