Centerbridge Calls Default on Valeant Pharmaceuticals

This is smoky filled room horseshit, a scheme by a very large Valeant bond holder–former Blackstone guys trying to get concessions.

Centerbridge has called default in a very crowded room filled with bond holders, who have leant Valeant upwards of $30 billion.

The move starts a 60-day window, through June 11, during which the embattled company would have to file its annual report or potentially be forced to repay the bonds early. That could trigger default notices in other pieces of Valeant’s roughly $30 billion in debt, analysts have said, and become a major additional headache.

Valeant reiterated Tuesday that it is on track to file the annual report, which was due earlier this year, by April 29. That would enable it to avoid a default.

After the 10-k is filed, these menaces will go away. Until then, expect assholes like at Centerbridge to harangue the company to sweeten the pot.

Shares of VRX are slightly lower in the after hours.