THQ Files for Bankruptcy Protection

On Wednesday, video-game maker THQ (NASDAQOTH: THQIQ  ) announced that it has filed for Chapter 11 bankruptcy protection and simultaneously signed an asset purchase agreement with affiliates of Clearlake Capital Group.

Pursuant to the agreement, Clearlake will partner with Wells Fargo (NYSE: WFC  ) to provide THQ debtor-in-possession financing of $37.5 million to help the company remain in operation during the bankruptcy process. Clearlake will also pay $60 million to acquire "substantially all of the assets of THQ's operating business, including THQ's four owned studios and games in development."

However, the parties made it clear that the $60 million figure was merely a "stalking horse" bid at this point, one set to provide a floor price that other bidders may feel free to outbid. THQ is hoping to attract other, higher bids and has asked the bankruptcy court to schedule a hearing to choose the winning bid "about 30 days" from now.

Shares of THQ plunged 73.9% in response to the bankruptcy filing and closed the day trading for $0.36 apiece. Going forward, the company says it expects to receive a delisting notice from Nasdaq, nine days after which the company's shares would likely trade only over the counter.