Elan was believed to be locked in last-minute talks with its auditors yesterday in a bid to resolve outstanding issues on the firm's 2002 annual report so that it could be filed with the US Securities & Exchange Commission (SEC).
Elan runs the risk of defaulting on debt worth as much as $2 billion (€1.8 billion) if it does not file the report and accounts by the end of today.
The deadline was set by the company last week, when its bondholders allowed it seven more days to present the SEC with the 20-F form, which was originally due to be filed at the end of June. If the accounts are not filed tomorrow or the bondholders do not grant another waiver, Elan could face a crippling cash crunch as creditors call in their debts.
The latest delay is thought to centre around auditor KPMG which has, it is believed, not yet signed off on the accounts.
The filing was originally deferred while Elan sought agreement with the SEC over the accounting treatment of one of its off-balance-sheet vehicles and a related transaction.
KPMG's offices in the Republic and US are both involved in auditing the company's books. A spokeswoman for the firm said KPMG never commented on client affairs.
A spokesman for Elan said, meanwhile, that "more progress" had been made on the 20-F on Thursday evening and confirmed that discussions were continuing yesterday.
The spokesman said the firm was "talking to all parties" but conceded that agreement had not been reached yesterday afternoon.
Mr Peter Frawley of Merrion Stockbrokers suggested that the delay could relate to the implications for all parties involved if the accounts are restated.
The Elan spokesman "couldn't say" whether or not Elan had approached the holders of EPIL bonds worth $840 million for another waiver of their requirement to see the company's accounts.
The company will make a statement on the matter today.
It will be in the interests of the EPIL-holders to grant an extension if it is requested, since their debt ranks beneath senior loans worth $650 million that could also be called in if Elan defaults.
If the firm has not filed by September 14th, it will be in default to the holders of this Athena debt. This is seen as the ultimate deadline for the SEC filing.
Goodbody analyst Mr Ian Hunter said that if another reprieve is agreed tomorrow, the company will be expected to provide some information on the aspects of the accounts that stand in the way of filing.
Shares in Elan suffered amid the continuing uncertainty yesterday, dropping 23 cents to €4.22 in Dublin and closing four cents lower at $4.95 in New York.
