by Mark Barley
THQ sale hits snag as objections are raised
THQ's proposed sale to Clearlake Capital Group has hit some snags as separate parties have raised objections about how the sale has gone down.
According to Distressed Debt, more than one objection has been raised over THQ's proposed sale. One objection came from Roberta DeAngelis - a U.S. Trustee who is overseeing THQ's bankruptcy process - stating that the proposed sale has gone down too quickly for other potential buyers to garner interest. DeAngelis seems to think that THQ and Clearlake struck a deal outside the parameters of the bankruptcy court and that the sale of THQ's assets was scheduled at Clearlake's convenience. Clearlake has allowed THQ to use credit during the bankruptcy process with assistance from Wells Fargo. DeAngelis also pointed out that exact excessive fees and overbid procedures were put in place deterring anyone but Clearlake from making a bid on the company.
THQ's creditors have also raised objections to the company being sold off as a "whole" instead of taking bids on individual assets. The creditors seem to think that selling off the assets individually would yield a greater profit.
Clearlake's bid involves the monetary figure of $60.5 million and control of all THQ's debts and liabilities.
We'll keep you posted.