Bankrupt video game maker THQ finds a buyer in Clearlake Capital

MUMBAI: Video game maker THQ, which has filed for bankruptcy, said it has entered into an asset purchase agreement with Cearlake Capital Group which has agreed to acquire the assets of THQ‘s operating business, including THQ‘s four owned studios and games in development.

Clearlake has agreed to serve as the "stalking horse bidder" for a sale process, which allows other interested parties to come forward with competing bids.

Aggregate consideration offered by Clearlake for the purchase totals approximately $60 million, including a new $10 million note for the benefit of the company‘s creditors. The company is asking the Court for a schedule to complete the sale process in about 30 days.

The company‘s foreign operations, including Canada, are not included in the filings.

The company has also obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.

THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ‘s first-day motions. All of the company‘s studios remain open, and all development teams continue.

As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts.

"The sale and filing are necessary next steps to complete THQ‘s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ‘s deep bench of talent," said THQ Chairman and CEO Brian Farrell.

"We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible."

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