THQ’s plan to sell itself lock, stock, and barrel to the Clearlake Capitol Group as part of a Chapter 11 bankruptcy filing has been denied.
During a hearing held on Friday, January 4, U.S. Bankruptcy Judge Mary F. Walrath denied the sale due to complaints from THQ’s creditors. They’ve claimed that selling the company in one piece has pushed down the sale price (originally pegged at $60 million by THQ/Clearlake) and scared away other potential purchasers.
THQ asked all potential buyers to submit their bid by January 8, with plans to complete the sale two days later. However, THQ’s creditors asked for an additional three weeks to give potential buyers more time to evaluate the company. A representative from WB Games spoke at the hearing and told the judge the publisher would be in favor of an extension. The company famously bought Midway Games, and the rights to the majority of their franchises (including Mortal Kombat), in 2009. Nine other companies were said to be interested in either all or part of THQ’s assets.
Another hearing is scheduled for tomorrow, January 7, to determine how the sale will proceed.
[Source: Bloomberg Business Week]