financial cliff, with its stock currently dangling around $1.25, market capitalization at $8.5 million, and corporate heads exploring financial strategies with a private equity broker. Now, THQ's Chief Financial Officer Paul Pucino has resigned, with no one named as his successor. Pucino took over the position from Colin Slade in 2009.
"We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavors," THQ CEO Brian Farrell says.
THQ is now in a forbearance agreement with Wells Fargo, valid through January 15, wherein Wells Fargo will continue to distribute loans to THQ. In a forbearance agreement, the lender (Wells Fargo, in this scenario) stops enforcing current or expected defaults, and the borrower uses the time to improve its financial situation or exit the relationship. It's a lot like time out, but for a corporation.
"We are pleased to have reached an agreement with Wells Fargo," Farrell says. "This agreement enables us to continue focusing on bringing our games in development to market. Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase."
THQ has also entered negotiations with a mysterious financial sponsor, and it expects these to conclude with "significant and material dilution to shareholders."