THQ defaults on $50m Wells Fargo loan
UPDATE: Statement from president Jason Rubin
THQ president Jason Rubin has released a statement clarifying the company's problems with its Wells Fargo loan.
"As indicated in our quarterly report (10-Q) filed today, THQ is in discussions with Wells Fargo to resolve an issue with regard to our credit agreement. We believe we will reach an agreement on this matter with Wells Fargo. The issue stems from a relatively small amount borrowed against the credit facility in mid-October 2012, which was subsequently repaid in full. THQ currently has $16.4 million outstanding on its facility, which is unchanged since we released second quarter earnings."
Troubled publisher THQ has defaulted on its $50 million loan from Wells Fargo.
Revealed in SEC filings last week, the publisher has defaulted at least once during the fiscal quarter ended September 30. For that quarter, THQ revealed a loss of $21 million and confirmed the appointment of Centreview Partners to look at the possibility of a sale.
Despite the default, Wells Fargo has continued to fund requests from THQ, with the publisher saying it is confident it can reach an agreement with the bank.
If THQ remains in default it will need to pay back the entire loan with an interest rate increase of 2 per cent, according to the terms and conditions.