By Tiernan Ray
Shares of video game maker THQ (THQI) have been halted pending a news announcement. The stock had been down 16 cents, or almost 12%, at $1.22 before the halt.
Update: THQ announced it has filed for bankruptcy, according to wire service headlines just now out.
Update 2: THQ has announced that it has “entered into an asset purchase agreement with a ‘stalking horse bidder,’ affiliates of Clearlake Capital Group L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development,” and that it will file under Chapter 11 in U.S. Bankruptcy court in Deleware.
THQ’s foreign operations, including in Canada, are not included in the filings, it said.
Clearlake, and Wells fargo, will provide $37.5 million worth of debtor-in-possession financing, and THQ will continue to operate its business without interruption during the sale period, it said.
THQ shares are indicated to resume trading at 2:25 pm, Eastern time.
Update 3: THQ shares have resumed trading and are down 78 cents, or 57%, at 60 cents 93 cents, or 67%, at 45 cents.