Valeant Pharmaceuticals International has announced that, as anticipated and consistent with its previously disclosed intention, it has launched the process to obtain an amendment and waiver to its credit facility.

Pursuant to the proposed waiver, the company is seeking to extend the deadline for filing its Form 10-K to May 31, 2016, and to extend the deadline for filing its Form 10-Q for the quarter ending March 31, 2016, to July 31, 2016. 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.  In addition to the extensions, the proposed waiver would also waive the cross-default to Valeant's indentures that arose when the Form 10-K was not filed on March 15, 2016. The proposed waiver and amendment must be approved by lenders holding more than 50% of the company's loans in principal amount. 

While seeking these waivers, the company is also asking its lenders to amend, among other things, the interest coverage maintenance covenant and certain financial definitions which would provide additional cushion in its financial covenants. The terms of the proposed amendment will restrict the company's ability to make certain acquisitions and other investments and to pay dividends and other restricted payments until the financial statements are filed and the company achieves certain leverage ratios. While these restrictions are in place, the company will also be required to apply substantially all net asset sale proceeds to prepay its term loans. 

The company 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.

Since the filing of the company's 8-K on March 21, the Ad Hoc Committee of the Board of Directors has continued to make progress and is now nearer to completion. While the Ad Hoc Committee has not concluded its work, the Committee has not to date identified any additional items affecting the company's financial statements.