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21. Re: THQ Breakup Details Confirmed Jan 24, 2013, 12:37 Redmask
 
nin wrote on Jan 24, 2013, 11:10:
That's still the dumbest fucking decision Volition ever made.

We're assuming it was their decision...


It was unfortunately, they practically begged to be able to do the project. THQ wanted a sequel to Red Faction Guerilla, not exactly a surprise since it sold higher than expectations.

I'm not clear how this whole bankruptcy thing works...

First off, if they could have gotten $26 million for Relic, couldn't they have just done that earlier and kept going?

Secondly, are they still bankrupt after getting $72 million?

A court determines the list of creditors to be paid first and determines if assets needs to be sold in order to meet the companys outstanding liabilities. Usually the hardest debt to disclose is paid first although the principles are a bit different between personal and business bankruptcy. They had obligations in the hundreds of millions and selling the studios would have left the company destitute. The hope was that they could find a company to buy them and continue operating as a subsidiary, they actually did manage this but the court rejected the proposal as they felt creditors would get more money from the assets being individually sold off.

THQ still technically exists but it is bankrupt and effectively defunct without any way to generate revenue.
 
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