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 debbie.cai@dowjones.com
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