Bausch Health Companies Inc. ( BHC ) is experiencing a sharp decline in its stock price Wednesday. The drop was triggered by a report suggesting the company is negotiating a potential prepackaged Chapter 11 bankruptcy with co-op creditor. The company later issued a statement, firmly denying any discussions related to bankruptcy or insolvency proceedings.

What Happened: The initial report from Reorg indicates that Bausch Health ( BHC ) might be in talks with its creditors about a potential prepackaged bankruptcy to address its balance sheet issues.

The company emphasized that the article in question contained “unsubstantiated rumors” and clarified that it has not been involved in any talks with creditors regarding bankruptcy. Additionally, Bausch said Reorg updated its original article to reflect this clarification, stating that the company is not considering bankruptcy proceedings.

About Bausch Health ( BHC ): Bausch Health Companies Inc. ( BHC ) is a global diversified pharmaceutical company with a wide range of products primarily in gastroenterology, hepatology, neurology, dermatology, medical aesthetic devices, international pharmaceuticals and eye health.

BHC Price Action: Bausch Health ( BHC ) shares are trading down 23.4% at $5.80 according to Benzinga Pro.

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Image: Courtesy of Bausch Health Inc.