Update: THQ Denied Approval of Bank Loan, Loses Bid For Quick Bankruptcy Sale

Nick Paglino

According to a report posted over at Bloomberg.com, THQ was denied a bank loan which would have allowed them a quick bankruptcy sale. At a hearing Friday in Wilmington, Delaware, U.S. Bankruptcy Judge Mary F. Walrath ruled in favor of creditors that the sale process didn’t give potential buyers enough time. "I have problems concluding that the pre-petition sale process was fulsome," Walrath told lawyers at the hearing, noting THQ "did not even put out to the public that it was for sale" until potential buyers signed non-disclosure agreements.

The report goes on to note that about 10 potential buyers contacted THQ once they found out about the sale. THQ sought bankruptcy protection on 12/19, and creditors want the sale process extended by about three weeks.

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