Valeant gets notice of default from some lenders; won't affect filing deadline

LAVAL, Que. – Valeant Pharmaceuticals International (TSX:VRX) says it has received a notice of default from some debt holders as a result of the delay in filing the company’s 2015 audited financial report with U.S. regulators.

The notice of default starts the clock ticking on a 60-day period in which the Quebec-based drug and health-care products company has to get the filing completed.

That gives Valeant until June 11 to complete the filing of its 10-K report, which its says would “cure the default in all respects.”

Valeant 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.

In any case, the company reiterated that it intends to file its 10-K on or before April 29.

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 40 cents at $40.83 Tuesday on the Toronto Stock Exchange, a far cry from its peak closing price of $346.32 set last August.

Note to readers: This is a corrected story. A previous version had the wrong peak closing stock price for Valeant