Game publisher THQ has entered an agreement with Wells Fargo that "forbears from exercising its rights and remedies against THQ." Basically, this means that Wells Fargo has agreed not foreclose on THQ for their current debts, and has also agreed to grant them additional loans.
The agreement lasts until January 15, 2013, during which time THQ will partake in negotiations that "may result in, among other things, significant and material dilution to shareholders."
“We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market,” said THQ Chairman and Chief Executive Officer Brian Farrell. “Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
THQ, known for publishing the Saints Row and Darksiders series, currently has a slew of high profile games in active development, including South Park: The Stick of Truth, Metro: Last Light, and Company of Heroes 2. Hopefully these loan extensions will help them get back on their feet.
[Source: Business Wire]