Warner Bros. is one of five strategic buyers investigating a potential purchase of bankrupt publisher THQ, according to a report fromDistressed Debt Investing.
Reporting from inside a United States Bankruptcy Court hearing yesterday, DDI wrote in a series of tweets that THQ banker Sam Greene (of Centerview) testified five buyers are in "active due diligence" to pursue a purchase of THQ. The other parties were not named.
Greene also reportedly stated those potential buyers are interested in purchasing individual THQ properties, not the company's entire portfolio. This has been a sticking point in the sale process, as THQ is reportedly not interested in selling off individual properties.
Earlier this week, United States Trustee Roberta DeAngelis along with THQ creditors objected to the short timetable for the sale, saying the window of 30 days would put a cap on the number of potential bids. The creditors also took issue with THQ's intent to sell its franchises as a total package, instead of on a game-by-game basis.
An unnamed bondholder reportedly said during the hearing that THQ "didn't give enough information for [strategic buyers] to value individual titles." Warner Bros. legal representation said the company has a team in place "ready to complete due diligence if more time is allowed."
Judge Mary Walrath did not approve the bidding procedures, according to DDI, and instructed all parties to "work out their issues" over the weekend. A new hearing is set for Monday, January 7.
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