Drugmaker Valeant'south bondholders intend to call default

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Source:   —  April 13, 2016, at 2:20 AM

Centerbridge Partners LP issued the notice, but it's not expected to lead to a default, according to people familiar with the matter. Centerbridge declined to comment.

n">Valeant Pharmaceuticals International Inc () said on Tuesday that it received a notice of default from its bondholders as a result of a delay filing its annual report.

Centerbridge Partners LP issued the notice, but it's not expected to lead to a default, according to people familiar with the matter.

Centerbridge declined to comment.

Valeant said in a statement that it presently has until June eleven to create the filing, below its bond agreements, but reiterated its intention to file it on or before April 29.

The company also said the notice of default doesn't imply it should pay back the bonds faster.

Valeant'south bonds were unchanged to half a point lower in late trading on Tuesday, according to IFR.

The Quebec-based drugmaker latest week said its lenders had given it an additional mo to file the annual report, providing breathing room for the embattled company as it tries to win back investor confidence.

Valeant has faced intense scrutiny and U. S. congressional investigations over its steep price increases for older medicines as well as for other questionable business and accounting practices. Its share price has slid almost ninety % since last August.

On Monday, the company asked its outgoing Chief Executive Michael Pearson to cooperate with the U. S. Senate Committee on Aging after he failed to indicate up at a hearing on Friday.

The Senate committee said it may start contempt proceedings against Pearson after he failed to reply to a subpoena to show up for a deposition related to an investigation into drug pricing.

Pearson was unable to testify at a congressional hearing in Feb because he was on medical leave recovering from pneumonia.

Valeant was represented by interim CEO Howard Schiller, whom the company has since accused of "improper conduct" that contributed to a misstatement of the company'south financial statements. Schiller has denied any wrongdoing.

Prosecutors in MA and Manhattan are probing Valeant'south pricing and distribution channels, while the U. S. Securities and Exchange Commission is investigating its accounting and disclosure issues.

Valeant shares were down 0.7 % in after-hours trading in New York. They'd earlier closed up 2.0 % at $31.99.

(Reporting by Rosmi Shaji in Bengaluru, Rod Nickel in Winnipeg and Carl O'Donnell and Bill Berkrot in New York, editing by G Crosse)

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