THQ Clearlake buyout not approved by judge, five buyers interested

During the course of a hearing into THQ’s increasingly unlikely wholesale purchase by Clearlake Capital, five potential purchasers have expressed interest, Distressed Debt reports. One of these is Warner Bros.

As you may recall from yesterday, the US Trustee in charge of THQ’s bankruptcy, and its creditors, objected to the sale. Centerview, THQ’s banker, said it has proof buyers are keen on a piecemeal sale of THQ’s assets, but that THQ didn’t provide enough information to allow these to be valued. THQ was also made to look a little dodgy over the course of the hearing; it had projected a cashflow of $10 million debit, but actually holds $3.4 million credit.

Looking over the details of the proposed sale, the judge did not approve either the bidding process (which at 30 days is considered too short for alternate parties to participate) or the DIP motion (which would allow THQ to act as trustee for its assets in place of its creditors).

The hearing will reconvene on Monday and all parties have been told to get together and work out their problems beforehand if possible.

Source: Beefjack

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