Double Fine, UFC Among Claimants in THQ Bankruptcy Case

[Sarah LeBoeuf]

Double Fine, UFC Among Claimants in THQ Bankruptcy Case

Over $200 million in claims against defunct publisher THQ have been filed, with more to come before the bankruptcy case ends in May.

most of its properties [http://www.escapistmagazine.com/news/view/121680-Bankruptcy-Auction-Ends-THQ] have found new homes, but that doesn't mean this story is over. Not surprisingly, the defunct publisher, which filed for bankruptcy late last year, owed a lot of people money, and now those people are seeking what they're owed. Over $200 million in claims have been filed, with Microsoft and Double Fine among those looking to collect.

The UK-based THQ Holdings Ltd. filed the highest claim, stating it's owed $39 million after loaning money to THQ. Microsoft filed two different claims totaling over $1 million for third-party peripheral licensing and financing fees. Zuffa, LLC, the UFC's parent company, wants $1.9 million in unpaid royalties; THQ published several UFC games between 2009 and early 2012. Double Fine is looking for the $595,000 in royalties it's owed from the sale of downloadable THQ-published titles Stacking and Costume Quest, as well as PlayStation Plus promotions. And not about to be left out, a Tennessee tax assessor wants $2.98.

Some of THQ's former employees have also filed claims; execs Jason Rubin and Jason Kay want $2 million and $2.1 million, respectively, in unpaid salary and severance, as well as a breach of contract. According to Polygon [http://www.polygon.com/2013/4/26/4257540/thq-creditor-claims-double-fine-microsoft-codemasters], many other developers and artists are also seeking payment from their work on games like Saints Row 4 and Metro: Last Light.

These are just a few of the claims against THQ, with more still being filed; none will be paid until May at the earliest. That's when these bankruptcy proceedings will end, bringing an official close to the depressing tale of the rise and fall of one of the industry's most prominent publishers.

Source: Polygon [http://www.polygon.com/2013/4/26/4257540/thq-creditor-claims-double-fine-microsoft-codemasters]

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[Product Placement]

Man... how is it even possible to owe this much money.

I mean, this is after them doing massive sales on their preexisting games, like that Humble Bundle stunt of theirs and after all of their properties and copyrights have been auctioned away.

That's still allow of money to owe.

Captcha: "You the man!"
With this much debt? You better believe it.

 

[BrotherRool]

I mean, this is after them doing massive sales on their preexisting games, like that Humble Bundle stunt of theirs and after all of their properties and copyrights have been auctioned away.

The Humble Bundle raised them basically 0 in game money terms. It was a nice idea and good at building brand identity but the reason it was so popular was that it was a lot of content for almost no money. I think it raised $5 million total? And that's not even the money that THQ received out of the deal, compared to debts in the 100's of millions

 

[LostintheWick]

I don't think the execs should get any money... especially not in the realm of millions.

 

[Dr.Awkward]

I don't think the execs should get any money... especially not in the realm of millions.

I have to agree here. If you've taken part in the decisions that made the company go under, then you have no right to demand any money owed to you by the bankrupt company - Consider it a hard consequence and a lesson to learn.

 

[lacktheknack]

I don't think the execs should get any money... especially not in the realm of millions.

I have to agree here. If you've taken part in the decisions that made the company go under, then you have no right to demand any money owed to you by the bankrupt company - Consider it a hard consequence and a lesson to learn.

So the company you work at has been ailing, but instead of jumping ship, you stayed on. Now it's bankrupt. Your continued existence there contributed to the financial strain that finally killed the company, so by your logic, you don't deserve the last paycheck, even if it's a bi-monthly one.

I... reject your logic.

EDIT: Misunderstood your comment. I still disagree, but I can see why you wouldn't want them paid.

 

[Product Placement]

I think it raised $5 million total?

You're right about it being around 5 million. That was the figure I looked up myself as I was writing the OP and mistook it for the cut that THQ received, after splitting up the proceeds.

But still, that's kinda my entire point, when $5 bloody million can be viewed as nothing, compared to the massive debt that you've racked up. And it wasn't like they weren't selling any games before the Bundle. They had some pretty big titles under their belt (Warhammer 40k, Saint's row, Metro 2033, Darksiders, Company of Heroes...)

It kinda reminds you of the point that people like Steling have been making, that you have really have to wonder if your business model is working, when you need to sell around 5 million copies of a game before it can be "considered" financially viable.

 

[Nikolaz72]

I don't think the execs should get any money... especially not in the realm of millions.

I have to agree here. If you've taken part in the decisions that made the company go under, then you have no right to demand any money owed to you by the bankrupt company - Consider it a hard consequence and a lesson to learn.

So the company you work at has been ailing, but instead of jumping ship, you stayed on. Now it's bankrupt. Your continued existence there contributed to the financial strain that finally killed the company, so by your logic, you don't deserve the last paycheck, even if it's a bi-monthly one.

I... reject your logic.

OT: Misunderstood your comment. I still disagree, but I can see why you wouldn't want them paid.

I think it's the logic that there is not gonna be enough money to pay everyone, so instead of prioritizing paying what is owed to the executives who earned millions as it was (and is owed millions) whom most likely had the chance to bank big money while working there.

Prioritizing the developers whom rely on it to get by and put food on the table might be the right thing to do.

Say one executive wanted 10 million. And 200 developers each wanted 50.000.

Why should the executive in this case get an absurdly large amount of money leaving the 100 developers out to hang?

That and the fact that the executive made decisions which caused the publisher to tank in the first place, might stand to serve as the logic of the guy you quoted.

 

[kailus13]

They can't pay the tax assessor, he's asking for far too much!

Those execs asking for enough money to pay Microsoft, Zuffa LLC and Double Fine are just being greedy.

 

[BrotherRool]

I think it raised $5 million total?

You're right about it being around 5 million. That was the figure I looked up myself as I was writing the OP and mistook it for the cut that THQ received, after splitting up the proceeds.

But still, that's kinda my entire point, when $5 bloody million can be viewed as nothing, compared to the massive debt that you've racked up. And it wasn't like they weren't selling any games before the Bundle. They had some pretty big titles under their belt (Warhammer 40k, Saint's row, Metro 2033, Darksiders, Company of Heroes...)

It kinda reminds you of the point that people like Steling have been making, that you have really have to wonder if your business model is working, when you need to sell around 5 million copies of a game before it can be "considered" financially viable.

It's not as bad as that yet As far as I understand with Tomb Raider, Square Enix were hoping that it was going to cover the costs of restructuring their entire organisation. Deus Ex: Human Revolution only sold 2.8 million and that was considered a financial success, and they're going to make a sequel for it.

But I agree on reflection, $200 million seems really high. Even at $15-60 million budgets that's four AAA* games that they would have made no profit off. I don't think they had that many unreleased titles (Saints Row 4 presumably took up a fairly large chunk of it though)

 

[Steve the Pocket]

Haven't they pretty much missed their shot at getting anything out of THQ? Not because they're broke, but because they're bankrupt. I thought the whole point of declaring bankruptcy was so they could legally say to their debtors, "Sorry, we're broke. Better luck next time, suckers!" and haul ass with what's left of the company's money.

 

[MetalDooley]

And not about to be left out, a Tennessee tax assessor wants $2.98.

Wait.Is that a typo or is someone really filing a claim for 2 frigging dollars?

 

[Glaice]

Good luck getting money out of a company that has none, you idiot claimants! (except THQ devs, they deserve it, noone else does)

 

[Rutskarn]

And not about to be left out, a Tennessee tax assessor wants $2.98.

Wait.Is that a typo or is someone really filing a claim for 2 frigging dollars?

Excuse me, that's almost three friggin' dollars.

That's enough for five Del Taco regulars right there. This is serious business.

 

[James Joseph Emerald]

And not about to be left out, a Tennessee tax assessor wants $2.98.

Wait.Is that a typo or is someone really filing a claim for 2 frigging dollars?

Ahem, two dollars and ninety-eight cence!

 

[JLink]

I am not sure what to think about Jason Rubin wanting $2 million. He worked for them for less than a year, and he accepted a job working for a company that he should have known was in trouble. And personally, when a company is in trouble, the leadership needs to take responsibility. But in the US at least, it doesn't happen. The execs get big payouts and the lower guys get nothing. Just like with EA. The outgoing CEO gets HALF A BILLION while studios get shuttered or have their workforce cut in half. Then there is Activision who has already fired a bunch of people from High Moon and their game hasn't even gone to retail yet. Hell, even in reatail when a company is doing bad it's the little guys who suffer via reduced hours and pay cuts while all the upper employers still make their same salary.

Now, as far as the Jason Rubin situation he did cite breach of contract and I don't know all the legal issues and possible penalties that go along with that. But the notion of any paper pusher getting paid $2 million for even a full years work while the people who actually put in all the hard work to make the product get fired just sits the wrong way with me and is a big reason why I think the country is in big-ass trouble.

 

[Requia]

And not about to be left out, a Tennessee tax assessor wants $2.98.

Wait.Is that a typo or is someone really filing a claim for 2 frigging dollars?

Government billing services are legendary. I got a bill for 8 cents last year.

 

[MetalDooley]

Excuse me, that's almost three friggin' dollars.

That's enough for five Del Taco regulars right there. This is serious business.

You're right.That extra 98 cents makes all the difference

Ahem, two dollars and ninety-eight cence!

If you're going to correct someone you should probably not make a spelling mistake in your correction

Government billing services are legendary. I got a bill for 8 cents last year.

No way.It probably cost more just to send the letter

 

[Requia]

Government billing services are legendary. I got a bill for 8 cents last year.

No way.It probably cost more just to send the letter

It'd also cost more to process the payment were I too actually pay it. (According to the bill I'm not even required to until I owe more).