@leebmx: As a bankruptcy attorney I get questions like this quite a bit. Chapter 11 bankruptcy is a complex beast, and the Federal Bankruptcy Code demands that the debtor (the person or entity filing bankruptcy, THQ in this instance) file it's financials to show what its operating income and expenses are. The chapter 11 plan is based on what THQ can afford to pay in to the bankruptcy plan each month. Creditors get to vote on the plan and it can't generally be approved unless the creditors approved it.
In this case it sounds like a pre-pack chapter 11 was used. This is a type of chapter 11 where you plan it out with the creditors before hand.
You might ask why a creditor would go along with such a plan instead of suing out their debt, obtaining a judgment and trying to seize assets based on their judgment. Creditors will almost always find that they will receive more money through a bankruptcy plan than had THQ just shut down since their assets are probably all secured by loans. Assets that are secured by loans must go to the secured creditors. It's not like any creditor can seize any asset they want with a judgment. The creditor that has the security interest gets the asset.
Sometimes bankruptcy plans include selling assets to fund a plan, other times it doesn't. From the very limited information I have on this bankruptcy it sounds like THQ gets to keeps it's licenses and will continue development. Once the chapter 11 plan is completed the debt that isn't paid back is discharged.
The chapter 11 plan can be short, could be a lump sum payout, or it can stretch out over years. It all depends on what the creditors will accept in a plan.
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