Valeant Pharma receives additional notice of default on delayed 1Q’16 filing

Troubled pharma firm Valeant Pharmaceuticals International, Inc. received a notice of default from the trustee under two of its senior note indentures on 2 June 2016, as a result of the delay in filing its Form 10-Q for the period ended 31 March 2016.

However, the notice of default did not result in the acceleration of its debt or that of any of its subsidiaries.

Under the indentures on its senior notes, Valeant would receive an additional 60 days from the receipt of the notice to file its 10-Q, failing which it would technically default.

Previously, on 9 May 2016, Valeant had announced that it expected to file the 10-Q 2016 report with the Securities and Exchange Commission and the Canadian Securities Regulators on or before June 10, 2016, which would be well in advance of the 60-day cure date.

Source: PRNewswire

Valeant gets notice of default from bondholders

Canadian pharma company Valeant Pharmaceuticals International Inc. received a notice of default from bondholders for the delay in filing its first-quarter report for 2016.

The company stated that it could avert default by filing the report by 18 July 2016.

Previously, Valeant had said it expected to file the report with U.S. and Canadian regulators on or before 10 June 2016, ahead of a 31 July deadline.

Valeant’s growth through acquisitions made it one of the pharmaceutical industry’s most widely owned stocks but its prospects were affected on accounting scandals, questionable business practices and lawmaker’s concerns about sharp price hikes on its products.

Source: Reuters

SunEdison’s yieldcos given more time to file delayed reports

SunEdison Inc.’s yieldco’s TerraForm Power Inc. and TerraForm Global arranged for more time to file their financial reports for 2015, thus helping them avoid a potential technical default on their credit facilities. The agreement was approved by lenders on Tuesday.

TerraForm Power Inc. has until 28 May 2016, to file its annual financial results whereas TerraForm Global Inc. could get an extension period of almost 10 months, in exchange for reducing the size of its own revolving credit line to $350m from $485m.

As per an SEC-filing, TerraForm Power would also delay the release of its 1Q’16 report as it had identified “material weaknesses in internal controls over financial reporting,” including the valuation of costs of projects acquired from SunEdison and processing accounts payable and general and administrative expenses.

The yieldcos delayed releasing their annual reports partly due to the assistance needed from their bankrupt parent SunEdison, which also hasn’t filed its reports. Parent company SunEdison had sought bankruptcy protection in April 2016.

TerraForm Global did not provide a specific new deadline in the filing but it had until either 30 March 2017, or 10 business days before “failure to deliver such financial statements would constitute an event of default” for another debt, its senior notes due 2022, whichever came first.

Source: Bloomberg

SunEdison faces risk of bankruptcy

U.S-based solar energy firm SunEdison Inc. faces the risk of bankruptcy, based on a statement issued by one of it’s listed subsidiaries, TerraForm Global Inc.

SunEdison’s aggressive acquisition strategy saddled it with debt of $11.6bn of debt based on its 30 September 2015 filing.

The company, along with its two listed subsidiaries, TerraForm Global and TerraForm Power Inc, will delay filing their annual results for the period ending 31 December.

SunEdison had already delayed the filing of its annual report twice, as it had identified material weaknesses in its financial reporting controls.

The delayed filing could lead to a breach of its covenant if it does not disseminate its annual report within 90 days after the end of each fiscal year – which in this case, is 30 March.

The company is also being investigated by the U.S. Securities and Exchange Commission to see if it had exaggerated its financial position.

Previously, Vivint Solar Inc., dropped its plans to get acquired by SunEdison in March 2016, citing concerns about SunEdison’s finances.

According to analysts, TerraForm Power and TerraForm Global were legally separate companies and would not follow SunEdison into bankruptcy.

Share prices of SunEdison and its two listed subsidiaries plummeted on the news.

Source:  Reuters