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8. Re: THQ Files for Chapter 11; Plans Sale Dec 19, 2012, 15:47 Beamer
 
Creston wrote on Dec 19, 2012, 15:33:
Can someone explain what's entailed in a Section 363 sale process?

Is there any chance of them continuing the way they have been, at all? I'd hate to see Saints Row go under...

Creston

A separate entity buys the rights to auction the company, in essence. THQ is somewhere along the lines of an $8 million dollar company. The rights to auction it were purchased for $60 million, so clearly people think it has value. If no one bids $60 million Clearwater gets THQ. If anyone bids more Clearwater gets a commission on that. That $60 million includes $10 million to debtors, but otherwise it's a sale of assets and not debts.

THQs goal is to still exist. Their stock is going to be delisted, but they fully expect to still exist. They're looking for someone larger to purchase them and keep them going. THQ has zero value to anyone not looking to do a video game company, so they'd stick around in some form. If you're in the home office, you should fear for your job. If you're in Volition you should fear what happens if a sale takes too long and cash runs out, but otherwise you have a future.

But what will ultimately happen if this is successful is that someone will own THQs value but not most of their debt (some of their purchase goes to that debt.) This leaves THQs only overhead being things like salaries and occupancy. They're mostly a healthy company like that, which is why they're doing this, but they saw no way to get out on their own.
 
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