Another day and more news saga from Valeant Pharma this time only coming after the market close. The company is being accused by a bondholder of being in default of its debt and shares tanked on that news. Then Valeant denied the news and shares are only down 2.7 percent in after hours trading.
The Wall Street Journal had reported reported earlier today that the bond-honder here, Centerbridge Partners LP intended to call a default. Valeant says that it received the note but that the notice did not “accelerate the indebtness” of the company. So we are back to square one?
If you are confused you are not alone.
RBC analysts have a flash note on the story and opine:
Valeant Reiterated that it Intends to File 10-K “on or before April 29th, 2016. While we do not completely understand the motivation behind the notice of default from the bondholders given a June 11th cure date vs. May 31st under the amended term loan agreement, we believe one possibility is to ensure Valeant files by the May 31st date and is not granted a second extension. We note, however, that the company has reiterated it intends to file the 10-K on or before April 29th.
The jury is out, but I have no doubt we will hear more on this by tomorrow (the latest).