Valeant Says Comfortable With Liquidity, Asks Lenders To Ease Some Terms Of Covenants

Valeant Pharmaceuticals Intl Inc VRX said it 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." Source Link: http://finance.yahoo.com/news/valeant-pharmaceuticals-launches-credit-facility-110000862.html The embattled Canadian pharma company is also asking lenders to extend the filing deadline of its 2015 annual report to May 31 and first quarter 2016 quarterly report to July 31. "While the Company is working diligently to file its Form 10-K and Form 10-Q, these extensions provide relief under the credit facility in the event the Form 10-K is not filed by April 29, 2016 and the Form 10-Q is not filed by June 14, 2016," Valeant said in a press release. Earlier this month, the company said a delay in filing its annual report would put it at risk of a default on its $30 billion in debt. Valeant was supposed to file its 10-K before March 15, triggering a technical default. The company still expects to file the 10-K statements "on or before April 29." Valeant said it is also asking its lenders to amend "the interest coverage maintenance covenant and certain financial definitions which would provide additional cushion in its financial covenants." Valeant's proposal to lenders would limit its ability to make certain acquisitions and to pay dividends until the financial statements are filed and the company achieves certain leverage ratios, the company said in a statement. "The proposed waiver and amendment must be approved by lenders holding more than 50% of the Company's loans in principal amount," Valeant added. Shares of Valeant were up 5.66 percent in the pre-market hours at $30.62 after it closed Tuesday's trading at $28.98.