Can Bill Ackman Save Valeant?

Hedge fund kingpin Bill Ackman just went all in on Valeant (NYSE: VRX) and it could make or break his career.

Owning over 30 million shares near the highs, Ackman is down several billion dollars on the disastrous trade.

Today, Ackman forced the ouster of CEO Michael Pearson and was himself appointed to the board. It is now very personal, as it should be with his hedge fund and reputation on the line.

The ad hoc committee investigation remains crucial as the company needs to file its 10-K on or before April 29, 2016 in order to avoid defaulting on it debt.  Today it was stated, “While the Ad Hoc Committee is still reviewing certain accounting related items, and has identified certain concerns related to those items with respect to the tone of the organization, it has not identified any additional items affecting the financial statements to date.”

Also of note, the company said that the improper conduct of the company’s former Chief Financial Officer (Howard Schiller) and former Corporate Controller, which resulted in the provision of incorrect information to the Committee and the company’s auditors, contributed to the misstatement of results.

Meanwhile, Schiller said he did not engage in improper conduct.   “Contrary to the statement in the 8-K and press release, at no time did I engage in any improper conduct that relates to any restatement of revenue the Company is considering,” he said in a statement.  He also declined the request from the Company’s Board to resign from the Board.

Key now is if the auditor wants the full ad hoc committee investigation conclusion before signing off.

 

 

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