THQ has been denied its request for a quick bankruptcy sale and failed to obtain approval of a loan to help fund operations until its sale, reports Bloomberg Business Week.
US bankruptcy judge Mary F. Walrath sided with creditors who had argued the proposed sale process was shutting out potential buyers which would need more time.
"I have problems concluding that the pre-petition sale process was fulsome," said Walrath, adding that the publisher "did not even put out to the public that it was for sale" until potential buyers signed non-disclosure agreements.
THQ hoped to hold an auction for the firm on January 9 and wanted bids to be placed by January 8 with a sale to be approved on January 10. THQ's creditors want an extra three weeks added to the process.
One potential bidder is Warner Bros. Entertainment, but only if the sale process is extended, according to Howard J. Weg, a lawyer representing the company. Creditors have also requested that bidders be able to bid on individual titles, which could produce more money than moving on the publisher in one piece.
"The individual titles may have substantial value," said Walrath.
A second hearing is scheduled for today.
Source: Business Week