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.
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.