It’s shaping up to be another difficult day in the recent history of troubled pharmaceutical giant Valeant.
On Wednesday, news broke from the Canadian Press
that the company was asking to delay the release of its financial statements from April 29 to May 31 in an effort to avoid a default on its loans.
However, just hours later, Bloomberg
released details that the company is in fact offering its lenders extra interest and a one-time fee on loans if they will loosen some debt load restrictions and waive a technical default.
According to the report, the company is offering creditors a 50 basis point fee as well as a 0.5 per cent increase on the interest of its outstanding loans.
Bloomberg’s information comes from two anonymous people with knowledge about the situation. They suggest that the proposal would limit the company’s ability to make acquisitions and other investments until financial statements are filed and certain leverage ratios are met.
Now the company insists it still plans to file statements by April 29 to avoid defaulting on debt agreements.
The latest twist comes after Valeant’s stocks have been battered in recent months with the company reducing its 2016 guidance and shares plunging by 51 per cent. Outgoing CEO Michael Pearson has also been subpoenaed to testify at a Senate hearing investigating the company’s drug price increases.