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THQ Receives Notice of Default From Wells Fargo Capital Finance

November 12, 2012, 07:14 AM
Filed Under: Legal

According to an SEC filing, THQ Holdings reported Wells Fargo Capital Finance sent notice it is in default on its $50 million line of revolving credit.

The filing states THQ was unable, “without unreasonable effort or expense,” to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 with the Securities and Exchange Commission by November 8, “in connection with the Company’s Credit Agreement with Wells Fargo Capital Finance.”

Wells Fargo informed THQ that loan availability on its credit line was less than 12.5% of the “maximum revolver amount on one or more occasions as of and after” the fiscal quarter ended September 30.

THQ noted it is currently in discussions with Wells Fargo regarding the asserted defaults and believes that it will reach an agreement with the banking institution “with respect to such defaults.”

Wells Fargo has continued to fund requests from THQ since September 30, while the firms try to reach an agreement.

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