THQ: Bankruptcy sale approved by court

U.S. Bankruptcy Court judge Mary F. Walrath today granted a motion to approve yesterday’s suggested sale of most of THQ’s assets to multiple buyers, THQ announced in a press release this morning.

The company expects the Court to enter a formal order today, according to the press release sent out shortly after midnight this morning. Yesterday’s court hearing ended without an official decision, though it seemed all but a formality when things wrapped up.

Farrell said that he is proud of the work his team has done over the years and that he regrets this “outcome.”

“While we had hoped that the restructuring process would allow the company to remain intact, I am heartened that the majority of our studios and games will continue under new ownership,” Brian Farrell, chairman and CEO of THQ said in a prepared statement. “It has been my pleasure to work alongside this great group of people, and I am proud of the imaginative and artistic games that our team has created. Although we will no longer be able to work together with a unified mission, I am confident that the talent we have assembled will continue to make an impression on the video game industry. For those whose positions are not likely to continue, I sincerely regret this outcome and we will be meeting with you over the next few days to discuss the transition.”

THQ president Jason Rubin added:

“I was brought in eight months ago to help turn this ship around, and while I’m disappointed that we could not effect a sale for the entire operating business, I am pleased that the new buyers will be providing jobs to many of our very talented personnel. When we first announced the sale process, I said I would be happy if the company’s games and people had a bright future, even if it meant I did not have a job at the end of it. And I still feel that way.”

The order will wrap up the nearly quarter of a century long history of THQ, which was formed as Trinity Acquisition Corporation in 1989. THQ was sold off piecemeal after a 22-hour-long auction that broke apart the company. Ten bidders participated in the auction, which included bids for the entire company as well as individual assets, according to the press release.

The sales raises $72 million once formalized, with roughly $29 million in purchased assets remaining, according to THQ attorneys presenting in court yesterday.

Under the proposed sales:

Vigil, developers of Darksiders, and other unnamed assets and intellectual properties will continue in the Chapter 11 process, according to the release. The company plans to continue to seek “appropriate buyers, if possible.”

THQ expects that the new owners will extend employment to “most employees” and to continue development of the games they purchased, according to the press release.

For further details about the sales, the reaction by the community, new owners and old, check out our storystream.