The extended deadline for Elan to file its annual report with the Securities and Exchange Commission (SEC) in the US passed last night without the company submitting its report.

Elan was originally due to lodge the report with the SEC by the end of June but sought a 15-day extension until July 15th after the report was delayed by ongoing discussions between the company and the SEC regarding the appropriate accounting treatment of some off-balance sheet special purpose vehicles.

But by the close of business in New York last night the company still had not filed the report.

However, analysts said yesterday that given that the company, led by its chief executive Mr Kelly Martin, was still in active discussions with the SEC with the hope of settling outstanding issues, the continued delay in filing should pass without comment from the SEC.

The key date for Elan remains July 30th. If the company has not filed its report by that date, it will breach certain debt covenants which, in a worst case scenario, could trigger the early repayment of some $2 billion (€1.8 billion) in debt, leading to the collapse of the company.

Elan's debt covenants require it to provide audited financial statements to the holders of two series of bonds, known as the EPIL 2 and EPIL 3 series of notes by July 30th.

Failure to do so allows the creditors to demand immediate repayment of their debt, which amounts to $840 million, and would also trigger early repayment demands from other sets of creditors.

However, analysts believe the holders of the EPIL notes may not call in the debt even if the annual report does not materialise by the end of the month.

"We continue to believe it is not in the interests of the EPIL note holders to call in their debt," Goodbody Stockbrokers said yesterday.

If Elan can secure agreement from the EPIL note holders not to accelerate their debt, it will win a six-week window of opportunity to reach agreement with the SEC on its accounts.

However, it must produce the figures by September 14th or else run the risk that the holders of $650 million of senior loan notes demand immediate repayment.

Elan shares had a mixed day yesterday. Although they added 34 cents in Dublin to close at €5.50, they lost 4.5 per cent to $5.96 in New York. k.