THQ has announced that the company has entered into “forbearance agreement” with Wells Fargo Capital Finance. Also announced was the resignation of the Chief Financial Officer Paul Pucino. Here are the details.
The agreement means that Wells Fargo has agreed to “forbear from exercising its rights and remedies against THQ and its subsidiaries with respect to previous events of default under its credit facility”. This will allow THQ to still receive additional loads from the bank, up to January 15, 2013. Wells Fargo Capital Finance agreed to terms mostly because THQ has “entered into exclusive negotiations with a financial sponsor regarding financing alternatives which may result in, among other things, significant and material dilution to shareholders”.