i'm not able to pull a quote using that or hlsh
On Yahoo Financial it is HLSH.PK.
Last Trade
Aug 12 · 2.25 Change
+0.60 (+36.36%) Prev Cls
1.65 Open
1.67 Volume
31,632,600
Day's Range
1.64 - 2.46
biz.yahoo.com
Reuters
HealthSouth Says Pays Past-Due Interest
Tuesday August 12, 5:31 pm ET
NEW YORK (Reuters) - Healthcare services provider HealthSouth Corp. (Other OTC:HLSH.PK - News) on Tuesday said it has paid all past-due interest to its creditors, giving investors new hope that the company can avert bankruptcy.
Shares of HealthSouth, pummeled in recent months amid allegations it inflated earnings by at least $2.5 billion in recent years, jumped more than 36 percent as the improving financial picture soothed investors.
HealthSouth's bonds also rose. Its 7-5/8 senior notes due 2012 increased to 84 cents on the dollar from 82.5 cents earlier in the afternoon. The 10-3/4 subordinated notes due 2008 gained 3 cents to 80 cents on the dollar.
The Birmingham-based company said its recent interest payments amount to $117 million and were made possible by increased liquidity from its operations and from asset sales.
"With these interest payments, we have fulfilled not only a legal but also a moral obligation to our bank lenders and noteholders," said Joel C. Gordon, HealthSouth's interim chairman.
HealthSouth also said in a statement it has begun discussions on an exchange offer to holders of its 3.25 percent convertible subordinated debentures. Payment of $344 million in principal on the notes had been due on April 1.
HealthSouth did not specify the terms of the offer.
Premila Peters, a fixed income analyst at KDP Investment Advisors, said Healthsouth might have to put together an enticing exchange offer to get convertible bond holders to take new debt rather than demand cash.
HealthSouth gave an upbeat presentation to investors last month and has shown that it is generating free cash flow. "That helps them stay away from bankruptcy," Peters said.
Peters cautioned that HealthSouth could still face fines and penalties from the government. The lack of audited financial statements makes it unlikely the company will get access to additional capital in the markets, she said.
The company said it had $445 million of cash prior to its recent interest payments, leaving the company short of funds to fully repay its debts.
HealthSouth said its payment on the debentures would depend on obtaining approval from bank lenders and other noteholders.
The company fell into default on its loans when its credit was frozen after HealthSouth admitted its past financial statements could not be trusted.
Fourteen former executives have either pleaded guilty or agreed to plead guilty to criminal fraud charges since the accounting scandal came to light in March. All 14, including the company's five past chief financial officers, are cooperating with investigators.
HealthSouth is the country's largest provider of outpatient surgery, diagnostic imaging and physical therapy services.
Shares of HealthSouth closed up 60 cents, or 36 percent, to $2.25, on the Pink Sheets. |
