Valeant seeks more time to file annual report

Wed Mar 30, 2016 2:27pm EDT
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By Ankur Banerjee

(Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO: Quote) said on Wednesday it was asking its lenders for another month to file its annual report, seeking to reduce the risk of a default on its $30 billion debt if it misses the current April 29 deadline.

However, Valeant - whose U.S.-listed shares were down 6 percent in afternoon trading - said it still intended to meet the end-April deadline and was confident about its finances.

Valeant said last week that a board committee probing the company's ties to specialty drug distributor Philidor had found accounting problems dating back to December 2014.

On Wednesday, the Canadian drugmaker said the committee had not found any additional items affecting its financial statements, but had not finished its review.

"The company is comfortable with its current liquidity position and cash flow generation for the rest of the year, and remains well positioned to meet its obligations," Valeant said.

Valeant was originally due to file its annual report by March 15 but said in February it would not meet that deadline as a result of the review, which started in late 2015.

"Even if they are confident they are going to file by April 29, they still want to give themselves an extra month of runway," Justin Forlenza, an analyst at credit research firm Covenant Review, told Reuters.

An extension to May 31 would also give creditors some additional comfort in the near-term, Mizuho Securities analyst Irina Koffler said in a client note.   Continued...

The headquarters of Valeant Pharmaceuticals International Inc., seen in Laval, Quebec November 9 2015.   REUTERS/Christinne Muschi