Valeant gets additional notices of default over late filing of financials

LAVAL, Que. – Valeant Pharmaceuticals International (TSX:VRX) says it has received more notices of default from debt holders, but is still on schedule to file its audited financial statement with U.S. regulators by April 29.

The troubled Quebec-based drug and health-care products company said Friday after markets closed that it had received notices of default from the trustee under indentures governing various notes due in 2020, 2021, and 2022.

“Under these bond indentures, the company has until June 21, 2016, 60 days from the receipt of the notices, to file its form 10-K, which will cure the default under the applicable indenture in all respects,” it said.

The company, which made a similar announcement involving other debt holders on April 12, added that the notices of default do not result in the acceleration of any of the company’s indebtedness.

Under the previous default notices, it had until June 11 to complete the filing.

Valeant had earlier warned of the possibility of receiving notice of default even after a majority of lenders had agreed earlier this month to give it until May 31 to complete the filing.

Valeant wasn’t able to file by the normal March 15 deadline because of a need to restate how it reported about US$58 million of revenue from Philidor Rx Services, an affiliated company that has since been shut down.

Once one of Canada’s most valuable companies following years of growth through multiple acquisitions, Valeant’s stock has dropped dramatically since last summer amid controversy on several fronts, including its relationship with Philidor.

The possibility of default has been another factor weighing on Valeant’s stock price this year. The stock closed up $3.10 or 7.3 per cent at $45.57 Friday on the Toronto Stock Exchange, although that remained a far cry from its peak closing price of $346.32 set last August.