Elan won a new one-week reprieve from its bondholders yesterday after missing a fifth deadline for filing 2002 accounts with the US Securities and Exchange Commission (SEC).

The firm had been due to file the accounts by close of business yesterday, and could have risked a $2 billion (€1.83 billion) cash crunch if the holders of $840 million of its EPIL debt had not allowed a deadline extension. Unlike a similar reprieve allowed last week however, Elan did not have to pay a fee to the EPIL-holders regarding yesterday's waiver.

The previous extension, which allowed Elan more time to reach agreement on the accounts with its auditor, had cost the company $2.1 billion.

An Elan spokeswoman said it had made progress with its auditor, KPMG, over the past week but declined to make predictions on when the accounts would be filed on the 20-F form. Elan said in a statement that it was working to conclude "all audit-related issues and matters". It is understood that Elan asked for no more than a one-week delay this time. A longer waiver had been requested last week but was refused.

Analysts said this could suggest that Elan was now closer to completing the 20-F than at any point since the first deadline for filing passed at the end of June. They said the absence of a waiver payment was also positive, but warned that the further delay would add to investor nervousness.

The latest extension, set to expire on August 29th, will bring the company closer to the crucial date of September 14th, when the continued absence of a filing would leave Elan in default to the holders of senior notes worth $650 million. This could trigger other repayments and lead to a cash crunch that would threaten Elan's survival.

Elan's shares had a mixed performance yesterday, adding five cents to close at €3.95 in Dublin, but dropping back four cents to $4.29 in New York, where they are mainly traded.