Elan today announced that it has received agreements from a majority of the holders of the guaranteed notes issued to shareholders in Elan's special purpose vehicles known as EPILs.
The waivers are effective through August 8th, 2003. Elan did not pay a fee in connection with obtaining the waivers.
Elan faces a deadline today to files its annual results which was extended due to an ongoing investigation into the firm's accounting practices by the Securities and Exchange Commission.
Although the investigation has not been completed Elan said today it expects that it will have to restate its 2002 and 2001 earnings to reflect the revised treatment of the EPILs.
The estimated impact of the restatement will be to reduce diluted earnings per share for 2001 from approximately $0.95 to approximately $0.75. For 2002, the restatement is expected to reduce the diluted loss per share from approximately $6.87 to approximately $6.69.
Shareholders' equity at December 31st, 2002, is expected to be reduced by less than $10 million.