The bad news keeps rolling for publisher THQ, which revealed on Friday that it has defaulted on a $50 million credit facility with lender Wells Fargo. It is understood that the lender is still funding the company while the two parties hammer out a solution.
THQ entered into the $50m revolving credit facility back in 2011, and borrowed $21m during its third quarter (ending September 30). The publisher has not disclosed the conditions of the original credit arrangement, but as a result of its current situation filed a notification to the SEC for a five-day extension to file its quarterly report.
In a statement to Polygon
, THQ clarified its status. "Today THQ filed a notification for a five-day extension to file our quarterly report (10-Q). The delay in the filing of our 10-Q has been caused by certain issues under the terms of our credit agreement with Wells Fargo. We are in discussions with Wells Fargo and believe we will reach an agreement with them to resolve these issues.
"Wells Fargo has continued to fund requests from us while we attempt to reach an agreement. We expect to file our 10-Q within the five days, on Tuesday, November 13, as required by the SEC."
The news follows the delay of three high-profile games in THQ's lineup in a bid to avoid further commercial and critical setbacks.