03/30/2016 09:47 EDT | Updated 03/31/2017 01:12 EDT

Valeant asks lenders for more time to file earnings reports to avoid default

MONTREAL — Valeant Pharmaceuticals says it is seeking a little more time from its lenders to file its annual report and quarterly results and avoid the risk of default.

The Quebec-based company said it has launched a process to extend the filing of the report known as Form 10-K until May 31, a month later than the deadline it had hoped to achieve.

It also wants to extend the filing of its quarter ending March 31 until July 31.

The company (TSX:VRX) warned two weeks ago that it could be in breach of some of the covenants on its approximately US$30 billion of debt if it doesn't obtain some relief.

Despite seeking the changes, Valeant said Wednesday that its financial position isn't in any immediate danger.

The proposed extensions must be approved by lenders holding more than half of the value of Valeant's loan principal.

The Canadian Press