It is speculated THQ needs 50 million new debt on the condition old debt is swapped for equity. Present equity has 6 million value. If it were me I would want at least 90 percent of the equity as debtholders gave them 100 million debt now worth 20 million. 90 percent seems doable. 100 million verses 10 million that's about 10 percent. Then do (yes another) reverse split to dry up the excess shares.
60 million new shares add 6 million present shares = 66 million / 1 for 3 reverse split gives 22million outstanding with 50 million new debt. That could buy them a year. With no management reputation the market wouldn't give them any respect so share price could float from $1. to $2. for a while - old shares that's .30 to .90. THQ lives on the dark side.
existing debt holders don't want to convert to equity and give up any part of their recovery (e.g. K liquidation) to common shareholders. new creditors don't want unsecured debt behind the existing creditors. much easier to file BK and wipe away idiot shareholders and issue new shares to new creditors and existing debt holders in a deal. no point in keeping this company public and paying listing fees. muppets are delusional in thinking they survive.