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THQ Defaults on $50 Million Dollar Credit Facility
More troubling news for publisher THQ arose today when it was announced that the company failed to meet certain obligations in their $50 million dollar loan agreement with Wells Fargo. After “one or more events of default” occurred with some of the terms of the loan, Wells Fargo has taken a step back to try and figure out what sort of deal can be made, if any, for the ailing company.
The loan was taken out last September and must be repaid within four years. Neither company has said what specific obligations or terms were not met, and it’s not guaranteed that an agreement can be made between THQ and Wells Fargo.
THQ’s stock dropped 35% last week due to poor earnings reports and the lackluster sales of Darksiders II. The company also had to delay the releases of Company of Heroes 2, South Park: The Stick of Truth, and Metro: Last Light.
This marks yet another point in a long string of disappointment rolling out of what was once one of the largest publishers in the gaming industry, leading many analysts to question whether or not the end is near for THQ.