THQ Inc. on Monday reached an agreement with creditors for a revised bankruptcy sale process, which will take more time than the Agoura Hills video game maker originally envisioned and could potentially result in a breakup of the company.
U.S. Bankruptcy Judge Mary F. Walrath in Delaware approved a process that would allow individual sale of assets of THQ, developer of the “Saints Row” and “Company of Heroes” franchises, according to reports by Bloomberg News and industry blogs Joystiq and Escapist.
Bidders would have to submit offers by Jan, 22, with an auction held later that day. THQ then would seek court approval of the sale, with an expected closing by Jan. 24.
About 10 bidders reportedly are interested in THQ, with at least five in “active due diligence,” including Burbank film studio Warner Bros. and Redwood City’s Electronic Arts Inc., the world’s third largest game publisher.
THQ filed for Chapter 11 reorganization on Dec. 19, with the aim that the company would be acquired by Santa Monica private equity firm Clearlake Capital Group LP in an roughly $60 million deal that would keep the company intact. The company in its filing reported assets of nearly $205 million and debt of $248 million.
The contract with Clearlake serving as stalking-horse bidder included a $10 million note for the company’s creditors, and at the time was expected to be completed in about 30 days. But the case’s bankruptcy trustee and a group of creditors who believe the company’s assets are worth more convinced Walrath on Friday to block the deal to allow time for other bidders to emerge.
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