WWE responds to THQ’s bankruptcy situation
WWE has responded to the situation surrounding THQ’s bankruptcy filing. It was announced earlier in the week that THQ will enter Chapter 11 bankruptcy so that an asset purchase by Clearlake Capital Group could be facilitated.
According to the WWE, THQ owes the wrestling giant $45 million. But even if THQ is unable to deliver on owed money, WWE’s financials will not be affected and the company believes that its business will not be significantly impacted.
WWE (NYSE:WWE) is listed in THQ, Inc.’s recent bankruptcy filing as an unsecured creditor holding a claim of approximately $45 million reflecting the entirety of the existing multi-year agreement. Any impairment of a current THQ account receivable would be immaterial to WWE’s financial statements. Even if the impact of THQ’s bankruptcy were detrimental to WWE, the Company does not believe that the ultimate economic impact for financial statement purposes would materially and adversely affect the results of operations or financial position of WWE in light of the strength of the WWE brand and the historical performance of WWE’s video game business.
In another statement, WWE said that it is “following the developments of THQ’s bankruptcy filing” and “anticipates actively participating within this proceeding.”
Thanks to Captain N for the tip.
