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Creditors and Trustees object to 'quick' THQ sale

Planned initial sale to Clearlake Capital criticised

THQ's initial sale to Clearlake Capital Group has been criticised by the publisher's creditors and a US Trustee.

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According to investing blog Distressed Debt, the US Trustee Roberta DeAngelis criticised THQ's form in bankruptcy court, claiming the sale schedule was weighed in favour of Clearlake Capital Group.

DeAngelis also said the final sale hearing on January 10 was too soon to allow other parties to meaningfully participate, and that the $2.25 million in fees was unusual.

Meanwhile, a committee of THQ creditors also criticised the proposed sale, alleging that the publisher had aimed to keep the company alive and its assets consolidated, rather than allow buyers to obtain individual assets. The report also claims creditors accused the publisher of fudging fund shortages to force a quick sale.

Both objections raise questions regarding the legitimacy of the sale, and whether other parties were offered sufficient opportunity to acquire THQ's assets.

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