Jan 8 Videogame maker THQ Inc said it
received court approval for a longer bankruptcy auction process
that will allow other parties to bid for its assets, after it
reached an agreement with the committee representing its
The court approved private investment firm Clearlake Capital
Group as the "stalking horse" or lead bidder for the entire
company but said the auction will also allow other interested
parties to bid for parts of the company.
The new auction calls for bids by Jan. 22 with the auction
to be held later in the day.
THQ, known for its wrestling and "Saints Row" games, had
filed for bankruptcy protection in December and had agreed to
sell all its assets to Clearlake Capital.
The videogame maker had asked the court for an unusually
quick auction, which the company wanted to hold just five days
after the start of the hearing.
That move was criticized by the company's unsecured
creditors who said it gave an unfair advantage to Clearlake and
was designed to specifically thwart other potential bidders.
The committee also said the sale to Clearlake was
meaningless and would guarantee the THQ's management retain
their positions within the new organization.
Delaware judges and creditors have scrutinized other recent
requests for rushed sales. In November battery maker A123
Systems Inc agreed to postpone its proposed auction
by about three weeks to give bidders more time to prepare.
The case is In Re: THQ Inc, U.S. Bankruptcy Court, District
of Delaware. No:12-13398.