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TMCNet:  Bankruptcy filings show no local creditors among Volition, parent THQ's largest unsecured claims [The News-Gazette, Champaign-Urbana, Ill.]

[December 27, 2012]

Bankruptcy filings show no local creditors among Volition, parent THQ's largest unsecured claims [The News-Gazette, Champaign-Urbana, Ill.]

(News-Gazette (Champaign-Urbana, IL) Via Acquire Media NewsEdge) Dec. 27--CHAMPAIGN -- The Chapter 11 bankruptcy filings by video game studio Volition Inc. and its parent company, THQ Inc., show dozens of local creditors -- but none among THQ's 40 largest unsecured claims.

Volition, which employs about 200 at its headquarters in Champaign, made the filing Dec. 19 in concert with THQ's filing, as did three other THQ subsidiaries. The cases have since been consolidated.

Chapter 11 bankruptcy allows companies to reorganize their debts, unlike Chapter 7 bankruptcy, in which companies liquidate their assets.

THQ is seeking a sale of its business, ostensibly to affiliates of Clearlake Capital Group. In the meantime, THQ has said it plans to continue operating its studios as usual, with no reductions in workforce.

THQ said the filing would let it shed certain obligations and emerge with backing from a new owner with experience in software and technology.

Volition's filing said the studio has between 200 and 999 creditors. The studio's assets are estimated between $500,000 and $1 million, while its liabilities are estimated between $1 million and $10 million.

Volition's filings did not detail the largest claims against the studio but did show the 40 largest unsecured claims against THQ.

The largest unsecured claim was a $101.9 million claim from Wilmington Trust. Other major unsecured claims against THQ include: -- World Wrestling Entertainment, $45 million.

-- Yuke's Co. Ltd., Osaka, Japan, $17.8 million.

-- Mattel Inc., $12.75 million.

-- Viacom International, $10 million.

-- JAKKS Pacific, $4 million.

-- Microsoft Licensing, $2.9 million.

-- Starcom Mediavest Group, $2.62 million.

A 117-page "creditor matrix" filed in the THQ case included dozens of creditors in Champaign-Urbana -- many of them employees, but also businesses and state agencies. The amounts owed to those creditors were not listed, however.

THQ's largest equity holders, according to the filing, are Atlanta-based Invesco Advisers, which owns 10.17 percent of THQ's common stock, and New York-based Brencourt Advisors, which owns 9.84 percent.

___ (c)2012 The News-Gazette (Champaign, Ill.) Visit The News-Gazette (Champaign, Ill.) at Distributed by MCT Information Services

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