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THQ defaults on $50m credit facility

Firm's troubles continue as it fails to meet payments due to a lender

Troubled publisher THQ has revealed that it has defaulted on some part of a $50 million credit facility with lender Wells Fargo on multiple occasions.

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While it hasn't clarified the conditions of the credit facility it has defaulted on, THQ said it had caused "one or more events of default" to occur during the fiscal quarter ended September 30, 2012, for which the publisher reported a net loss of $21 million.

THQ said in a recent filing with the US Securities and Exchange Commission: "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."

Last week THQ delayed three of its biggest upcoming games (South Park: The Stick of Truth, Metro: Last Light and Company of Heroes 2) to allow for "additional development time to be market-ready".

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