Valeant bondholders issue notice to default
Valeant (NYSE: VRX) has issued a statement detailing plans from some of its bondholders to call a default because of the Canadian drugmakers delay in filing its annual report for the fiscal year ended December 31 2015.
Centerbridge Partners issued the notice of default of its 5.5% notes due 2023. According to CNBC, shares at Valeant fell as much as 8.1% after hours Tuesday. They had previously indicated the possibility of such notice being issues in its March 15 preliminary earnings call.
Valeant’s statement does, however, indicate the eventual filing of its 10-K will alleviate these issues. It says: “The Company has until June 11, 2016, 60 days from the receipt of the notice, to file its 10-K, which will cure the default in all respects. The Company is working diligently and is on schedule to file its 10-K on or before April 29, 2016. The notice of default does not result in the acceleration of any of the Company’s indebtedness.”
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