It seems as though THQ, in filing a late SEC Form 10-Q, has revealed that it has defaulted in its revolving line of credit with Wells Fargo Capital Finance.
According to the filing THQ is “currently in discussions with Wells Fargo regarding the asserted defaults” and hopes to reach some sort of agreement in the near future.
Wells Fargo is currently continuing to fund requests from THQ while the two companies attempt to reach an agreement.
THQ posted a $21 million net loss recently, and addressed concerns with its business in the filing, stating that “Increasing Shift to Online Content and Digital Downloads”, the “focus on selling used video games” and “demand for ‘hit’ titles” were some of the reasons why THQ was having difficulties.
Essentially, THQ must reach some form of agreement with Well Fargo or risk bankruptcy. But in a statement sent to Polygon, THQ claimed it was “in discussions with Wells Fargo and believe we will reach an agreement with them to resolve these issues”.