Valeant Gets More Default Notices After 10-K Filing Delay

Valeant Pharmaceuticals International Inc.’s bondholders are ratcheting up the pressure on the drugmaker to file its delayed financial statements.

A trustee for holders of four of the company’s bonds sent Valeant notices of default after it failed to file its 2015 financial results on time, the drugmaker said in a statement Friday. That’s the second round of default notices the company has received within two weeks. Valeant, which said that it’s still on track to file the statements on or before April 29, must do so before a May 27 deadline, after which lenders could demand repayment.

The Laval, Quebec-based company missed its initial March filing deadline amid scrutiny over its business practices, accounting, drug pricing and its relationship with mail-order pharmacy Philidor Rx Services LLC. Earlier this month, the drugmaker won support from its most senior lenders to waive a default that was triggered by the delay. The deal, which also eased some restrictions on its loan pact as the company tries to manage its $32 billion debt load, gave it until May 31 to file its so-called 10-K statement.

But an April 12 default notice by some bondholders effectively moved up that deadline by four days to May 29, the company said last week. Centerbridge Partners, the investment firm founded by Mark Gallogly and Jeffrey Aronson, had sent that notice, people with knowledge of the matter said at the time.

Like the initial default notice, the latest ones don’t result in the acceleration of any debt payments, Valeant said in the statement Friday.

The drugmaker is in talks to hire Perrigo Co. Chief Executive Officer Joseph Papa to replace outgoing CEO Mike Pearson, a person familiar with the matter said earlier. Valeant said in March that Pearson would leave the company once a replacement is found, part of a broader overhaul that included adding activist investor Bill Ackman to its board.

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