All THQ news is bad news this week, with the publisher now in dire straits on a credit line from Wells Fargo, which is in “certain defaults”.
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.
The filing reveals that the line of credit defaulting has led to a delayed 10-Q filing (quarterly financial report mandated by the US Securities and Exchange commission)–and after significant drops in stock value over the last week, a $21 million loss posted for the 3rd quarter of its fiscal year and the announced delays of Metro: Last Night, South Park: The Stick of Truth and Company of Heroes 2, things don’t look particularly good for the Agoura Hills publisher.