THQ's legal woes have continued to compound even after the publisher filed for Chapter 11 bankruptcy. With the auction for the THQ's properties set to happen on Tuesday, South Park Studios has filed an objection against the potential sale of its in-development RPG, South Park: The Stick of Truth.

South Park Studios LLC's objection asked the Delaware court to deny the possible sale of Stick of Truth unless the buyer is agreed upon by SPS, and the studio is given a payment of $2.275 million to cover defaulted payments and to provide, "adequate assurance of future performance."

According to Polygon, the filing (which was done last week), indicated THQ and SPS entered into an agreement in 2011 which allowed the publisher the licensing rights to develop a game based on South Park's intellectual properties through Obsidian. As SPS now feels that agreement has been broken, the company pointed out, "applicable law excuses Licensor from accepting performance from or rendering performance to a party other than THQ." As the assets being sold off are technically under license from South Park Studios, and not the property of THQ, any sale would then require the approval of the company.

For its part, THQ claimed in response that such a sale was legal under the Copyright act of 1976, as THQ was the exclusive licensee. THQ intends to, "provide an appropriate evidentiary record at the Sale Hearing for the Court to determine that the adequate assurance requirements ... have been satisfied."

More is expected to develop soon on THQ's future, as its assets are up for sale starting today, with many other publishers (including EA, Ubisoft, and Warner Bros.), interested in acquiring some of the IPs formerly under THQ's umbrella.

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