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THQ in Default on Credit Line

A THQ SEC Filing (Adobe Acrobat format) reveals more fiscal bad news for the publisher, following a a recent collapse of its stock. The filing reveals THQ is in default on a line of credit from Wells Fargo, leading to a delayed 10-Q filing, and a situation that sounds tenuous at best: "The Company is currently in discussions with Wells Fargo regarding the asserted defaults and believes that it will reach an agreement with Wells Fargo with respect to such defaults. Wells Fargo has continued to fund requests from the Company after September 30, 2012 while Wells Fargo and the Company attempt to reach an agreement. There can be no assurance, however, that the Company will achieve an agreement with Wells Fargo." Thanks nin via Kotaku/Polygon.

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11. Re: THQ in Defaults on Credit Line Nov 11, 2012, 16:19 killer_roach
 
NewMaxx wrote on Nov 11, 2012, 16:15:
killer_roach wrote on Nov 11, 2012, 15:12:
Your argument only holds water in the situation where THQ had a clearly outlined path back to profitability, which they don't. This default isn't a temporary setback - it's a symptom of further underlying issues. Without even a current accounts surplus on the horizon (much less an overall profit), it's only a matter of time before the sharks start to circle (if they haven't already).

Interesting. I wasn't aware I had made an argument. Not that I don't get accused of that every time I (or anybody else) posts here...

Actually, what I stated was that they are effectively one step away from bankruptcy. Everybody involved (THQ, Wells Fargo) are well aware of that - as I said, it did not come as a surprise. Therefore my statement that companies default all the time only suggests that news of such a default is absolutely meaningless with regard to whether or not they are going bankrupt, rather it is the particular company's circumstances that give the honest appraisal. Everybody is making the best of a bad situation by stringing it out, and if you want me to fall back to my original post's analogy, like the Byzantine Empire.

The crux of what you said earlier was that situations like this happen all the time. Technically, that is true.

However, in situations like this the likelihood of the defaulting party surviving in any meaningful sense are, given the fundamentals, practically nil.

THQ, as it currently stands, is not "effectively one step away from bankruptcy". With a default of this size, they are, for all intents and purposes, bankrupt in any meaningful sense apart from the formal filing.
 
Previous Post Next Post Reply Quote Edit Delete Report
 
    Date Subject Author
  1. Nov 11, 14:10 Re: THQ in Defaults on Credit Line Rossafur
  2. Nov 11, 14:47  Re: THQ in Defaults on Credit Line NewMaxx
  3. Nov 11, 15:12   Re: THQ in Defaults on Credit Line killer_roach
  5. Nov 11, 15:23    Re: THQ in Defaults on Credit Line ASeven
  6. Nov 11, 15:35     Re: THQ in Defaults on Credit Line Wildone
  7. Nov 11, 15:48     Re: THQ in Defaults on Credit Line killer_roach
  8. Nov 11, 15:55    Re: THQ in Defaults on Credit Line Prez
  9. Nov 11, 16:11     Re: THQ in Defaults on Credit Line nin
  14. Nov 11, 19:41      Re: THQ in Defaults on Credit Line Prez
  10. Nov 11, 16:15    Re: THQ in Defaults on Credit Line NewMaxx
>> 11. Nov 11, 16:19     Re: THQ in Defaults on Credit Line killer_roach
  4. Nov 11, 15:17 Re: THQ in Defaults on Credit Line Closed Betas
  12. Nov 11, 18:36 Re: THQ in Defaults on Credit Line Cutter
  13. Nov 11, 19:39  Re: THQ in Defaults on Credit Line The Half Elf
  15. Nov 11, 21:28 Re: THQ in Defaults on Credit Line Nucas
  16. Nov 11, 22:22  Re: THQ in Defaults on Credit Line Jerykk
  17. Nov 11, 22:31  Re: THQ in Defaults on Credit Line ViRGE
  18. Nov 11, 23:31   Re: THQ in Defaults on Credit Line Jackplug
  20. Nov 12, 00:27    Re: THQ in Defaults on Credit Line Jerykk
  21. Nov 12, 03:35     Re: THQ in Defaults on Credit Line Fantaz
  22. Nov 12, 04:04      Re: THQ in Defaults on Credit Line zombiefan
  19. Nov 12, 00:20   Re: THQ in Defaults on Credit Line Nucas
  23. Nov 12, 04:49 Re: THQ in Defaults on Credit Line aesir05
  24. Nov 12, 05:29  Re: THQ in Defaults on Credit Line Kajetan
  25. Nov 12, 06:33   Re: THQ in Defaults on Credit Line Dev
  34. Nov 13, 03:38    Re: THQ in Defaults on Credit Line Iurand
  35. Nov 13, 05:23     Re: THQ in Defaults on Credit Line Prez
  37. Nov 13, 16:52      Re: THQ in Defaults on Credit Line Dev
  26. Nov 12, 09:43 Re: THQ in Default on Credit Line Verno
  27. Nov 12, 10:20  Re: THQ in Default on Credit Line ASeven
  28. Nov 12, 10:21   Re: THQ in Default on Credit Line ASeven
  29. Nov 12, 10:32    Re: THQ in Default on Credit Line Kajetan
  30. Nov 12, 11:28    Re: THQ in Default on Credit Line Creston
  31. Nov 12, 11:31     Re: THQ in Default on Credit Line nin
  32. Nov 12, 14:41      Re: THQ in Default on Credit Line Prez
  33. Nov 12, 19:41       Re: THQ in Default on Credit Line gilly775
  36. Nov 13, 06:13 Re: THQ in Default on Credit Line Suppa7


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