THQ dumps CFO, enters into financial negotiations

It has not been a very good year for publisher THQ, but with any luck there may be a little light at the end of the tunnel.

THQ

Today it announced that its executive vice president and CFO Paul Pucino has resigned, and that it is in “exclusive negotiations” with a potential financial sponsor to help cover payments on the loan it defaulted on a few weeks back.

Signs of THQ’s struggles have been eminent since last year, with:

But it’s not all bad news: today THQ has reached a forbearance agreement with Wells Fargo, so WG will not be seeking legal action until January 15, 2013, giving THQ a little breathing space. In the meantime WG will continue making additional loans to THQ.

Due to the delay of its three upcoming titles to 2013, THQ will not be receiving any significant revenue to pay back Wells Fargo, and as a result have entered into “exclusive negotiations” with an unnamed potential sponsor. If those negotiations go well, it’s good news for THQ, but bad news for investors, as the cash injection “may result in, among other things, significant and material dilution to shareholders.”

Let’s hope that those negotiations prove fruitful, because if they don’t, we could be seeing some serious repercussions for the struggling publisher.

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