Game Maker THQ Is in Talks for Financing Alternatives; CFO Resigns

   By Debbie Cai 
 

THQ Inc. (THQI) said Chief Financial Officer Paul Pucino has resigned and that it is in talks with a sponsor on financing alternatives, a move that comes as the maker of video games and accessories faces a cash crunch.

THQ said it is evaluating alternatives with respect to the CFO role and has retained FTI Consulting to assist its finance and accounting team.

The game maker also said it has entered exclusive negotiations with a financial sponsor, which could result in "significant and material dilution to shareholders."

In addition, THQ has entered a forbearance agreement with Wells Fargo Capital Finance LLC in relation to previous defaults under its credit facility. The period of the forbearance will extend to Jan. 15 and in the meantime, Wells Fargo will lend more money to the company.

"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 Brian Farrell, THQ's chairman and chief executive. "Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase."

A representative for the company wasn't immediately available to comment on the reason for Mr. Pucino's resignation.

He held the roles of executive vice president and CFO for the past three years. Before joining the company, he consulted for various companies on financial and exit strategy activities.

Earlier this month, THQ said it has hired a bank to help it evaluate strategic financing options after it announced delays for its games and a loss equal to more than half of the cash left in its coffers.

Shares were up 1.6% to $1.27 after hours. The stock is down 94% over the past 12 months.

Write to Debbie Cai at [e-mail]

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