THQ has entered into a loan forbearance agreement that prevents it being sued should it default on loan payments.

The agreement is valid until January 15, 2013.

In addition, Wells Fargo – representing THQ’s creditors – has signalled that it will provide the ailing company with additional loans.

THQ is on the brink of bankruptcy following several tumultuous years of losses and poor revenues.

It is allegedly in talks with a financial sponsor that could provide some additional funding, but the terms of this deal are currently secret.

"We are pleased to have reached an agreement with Wells Fargo," THQ CEO and chairman Brian Farrell told Develop.

"This agreement enables us to continue focusing on bringing our games in development to market. Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”

The company recently hired mergers and acquisitions consulting firm Centerview Partners and announced that it was investigating “strategic alternatives”.