Court approves THQ liquidation; publisher officially dead

THQ will sell off its hollowed-out remains in a court-approved liquidation. This ends its bankruptcy and marks the official end of the company.

At a hearing in the Delaware bankruptcy court,  Judge Mary F. Walrath approved THQ’s plan, which will sell off nearly all of the company’s remaining assets and give the proceeds to the publisher’s creditors, according to Bloomberg.

“THQ has met the burden of establishing that the plan should be approved, and I will confirm it,” said Walrath.

The plan proposes to recover 20 percent to 52 percent of the money owed to unsecured creditors depending on how much they are owed.

In December, THQ filed for bankruptcy. The company planned to immediately sell its assets to Clearlake Capital, which intended to keep THQ together as one company. The publisher’s creditors objected to that sale. Those lenders suggested they would get more money if THQ was sold off in pieces, and the court eventually agreed.

In January, a court-ordered auction saw most of THQ’s properties shuffled off to other corporations.