THQ filed for bankruptcy protection last night, sparking fears over the status of its outstanding products – such as Metro: Last Light and South Park: The Stick of Truth. Company president Jason Rubin has now issued an open letter that plays down the “click-grabbing headlines” that he believes will follow the issue, and assures investors, the press, and gamers alike that the move is natural whenever a company looks to adjust its financial position.
In an open letter published on the THQ site, Rubin confirmed that the group has secured investment from a private equity firm named Clearlake Capital Group, which Rubin says will not block the completion of the company’s outstanding titles.
Said Rubin, “Clearlake is even providing the company the money it needs to keep working on the products as the process plays itself out. And importantly, when the purchase is complete, Clearlake has committed to invest additional ample capital to let us finish the games we are making and continue making games going forward.
“In short, they are investing in a new start for our company.”
Rubin goes on to explain that the sale had to be carried out through a “Chapter 11 proceeding of the Bankruptcy code”, and added, “The most important thing to understand is that Chapter 11 does not mean the end of the THQ story or the end of the titles you love. Quite the opposite is true, actually.”
He explained that the filing is common among companies that are undergoing restructuring, and that other major firms – such as American Airlines – have also filed for a Chapter 11 proceeding, and then name-dropped other firms that have gone down the same route, such as Marvel, MGM, and car manufacturer Chrysler.
The filing, Rubin said, is a technicality that allows other bidders to make a sale attempt, and added that, “Whatever happens, the teams and products look likely to end up together and in good hands.” He also made clear that THQ has a January 15th bank funding deadline, which is why the bankruptcy protection filing has been made now.
Rubin closed in saying, “So THQ made headlines today – and I am sure there will be tons of click-grabbing headlines over the next month or so. But what matters to us is not what is happening to THQ right now, but what the company and its teams will make of ourselves after we complete the sale.
“In short, the teams will be unburdened by the past and able to focus on what they should be focusing on — Making great games.
“I’m excited about the future and hope to have more to report soon.”
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Thanks MCV.
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