Bankruptcy Court Approves THQ's Liquidation Plan

July 17, 2013 -

THQ as a company will soon be gone. For all intents and purposes THQ has been dead for several months, but this week a U.S. bankruptcy court approved liquidation plans. Earlier this year THQ sold off assets including intellectual property and studios from its massive studio system. U.S. bankruptcy court judge Mary F. Walrath officially ended the company's bankruptcy case this week, by approving the company's plans to liquidate and pay creditors the cash that remained.

The judge noted that THQ had "met the burden of establishing that the plan should be approved, and I will confirm it."

As is usually the case in a bankruptcy, creditors will not get all that is owed to them. Instead they will get a fraction of the money they are asking for. THQ owes tens of millions in debt to creditors, and will use the money generated from asset sales to pay its creditors back, but most of those creditors will only see 20-52 percent of what they are owed. Obviously some creditors are in the front of that line and may get prioritized over other creditors.

Ultimately this decision by the court means the end of THQ.

Source: Bloomberg by way of Gamasutra

 


 
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