Here’s Why Valeant’s Shares Are Rising

Trading At The NYSE As  Valeant Shares Halted Ahead of News Announcement
Photograph by Michael Nagle—Bloomberg via Getty Images

Valeant Pharmaceuticals said on Thursday it had won approval from its lenders for an amendment and waiver to its credit facility, giving the embattled drugmaker an extra month to file its annual report.

As a result of the waiver, the deadline for filing the company’s annual report will be extended to May 31 and the deadline for filing its report for the quarter ended March 31 will be extended to July 31.

The extensions provide relief if Valeant (VRX) is unable to file its annual report by April 29 and its quarterly report by June 14, Valeant said. The Canadian drugmaker reiterated that it intended to file its annual report on or before April 29.

“The company is comfortable with its current liquidity position and cash flow generation for the rest of the year, and remains well positioned to meet its obligations,” Valeant said, repeating a statement it made last week.

Valeant’s U.S.-listed shares were up about 5 percent at $35.87 in premarket trading.

Laval, Quebec-based company said last week that it had asked its lenders for another month to file its annual report, seeking to reduce the risk of a default on its $30 billion debt if it missed the April 29 deadline.

Valeant was originally due to file its annual report by March 15 but said in February that it would not meet that deadline because of a review of its accounting practices by a board committee.

The company said on Tuesday that the committee had completed its review and had not found any new items that would require additional restatements.

Up to Wednesday’s close, the stock had risen almost 30% in two days, helped by that news as well as a comment by key shareholder and board member William Ackman that Valeant could appoint a new chief executive within weeks.

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