THQ thrown lifeline by lenders as investment negotiations continue

Lender Well Fargo has agreed to extend the terms of its loan to THQ, giving the publisher a new January 15th deadline to meet its demands.

Wells Fargo had previously threatened to default THQ after it failed to fulfil the conditions of its agreement. But as well as extending its deadline, it looks as if the financial institution may even be prepared to loan more money if it is convinced it will be invested in a way that could help THQ turn itself around.

THQ also says that it’s in talks with a potential financial sponsor” who would bring in a fresh cash injection.

However, despite the signs of encouragement the firm has been hit with the resignation of executive VP and CFO Paul Pucino. It seems as if THQ will not be naming a replacement in the near future.

THQ last month refused to offer any financial guidance for its upcoming quarter and refused investors and analysts permission to ask questions in its investor call.