Valeant’s creditors are not warming to the pharmaceutical giant’s plan to extend the deadline on filing its annual report, according to Bloomberg.
To recap, Valeant fell into a technical default when it failed to file its 10-K by March 15.
Valeant is offering creditors a fee and a boost in the interest rate on the debt in exchange for waiving the default and an amendment to its credit agreement.
Creditors have until Wednesday to tell the company whether or not they will accept the new terms for the company’s $11 billion of secured loans.
Valeant needs at least half of the investors holding the secured loans to agree to the new package for the amendment to go ahead. Some of those investors are pushing back.
Those that are balking are demanding a higher interest rate and a better fee, said the people, who asked not to be identified because the discussions are private. They also want to impose some restrictions on the terms the company is offering on the proposal, they said.
Valeant’s stock started crashing in October, after allegations of malfeasance from a short seller combined with government scrutiny over its pricing practices sent investors runing for the exits.
Now the stock, which was once wildly popular on Wall Street is now down 86% from where it was this time last year.