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Valeant Bondholders Just Told the Drugmaker It’s in Default

Trading At The NYSE As  Valeant Shares Halted Ahead of News AnnouncementTrading At The NYSE As  Valeant Shares Halted Ahead of News Announcement
Valeant Pharmaceuticals signage is displayed on a monitor on the floor of the New York Stock Exchange before the opening bell on March 21, 2016. Photograph by Michael Nagle—Bloomberg via Getty Images

Beleaguered Canadian drugmaker Valeant Pharmaceuticals International said it received a notice of default from bondholders for the delay in filing its first-quarter report.

The company said it can avert default by filing the report by July 18.

Last week, Valeant (VRX) had said it expected to file the report with U.S. and Canadian regulators on or before June 10, ahead of a July 31 deadline.

 

Valeant had been one of the pharmaceutical industry’s most widely owned stocks as its steady stream of acquisitions fueled strong gains in its shares.

However, questions about its accounting and business practices, coupled with lawmakers’ concerns about sharp price hikes, clouded its prospects last summer.

Valeant also filed its 2015 financial report last month, after missing the original March 15 deadline, citing an in-house review of its accounting practices. The probe found problems dating back to 2014.

The Laval, Quebec-based company’s U.S.-listed stock was down about 1% after the bell on Thursday.