HealthSouth Announces Agreement With Banks To Waive Payment Blockage Of Past Due Interest
BIRMINGHAM, Ala., Aug. 28 /PRNewswire-FirstCall/ -- HealthSouth Corporation (OTC Pink Sheets: HLSH) today announced that its lending banks have waived a payment blockage to allow past due interest to be paid to the holders of the Company's subordinated indebtedness. The banks had previously issued a payment blockage notice with respect to the Company's subordinated indebtedness, which blockage would have precluded holders of those instruments from receiving past due interest.
The Company also announced that it will transfer sufficient funds to the trustees for holders of all of its outstanding notes to permit payment of interest on past due interest owed to these holders in accordance with the terms of the relevant indentures. It is expected that payment of the past due interest will be made to the holders of Company's notes shortly after the record date of August 29, 2003.
"We're pleased to have received this waiver, representing the culmination of active negotiations by the Company with our bank lenders to pay past due interest owed to our subordinated noteholders," said Joel C. Gordon, HealthSouth's Interim Chairman. "We greatly appreciate the support our banks have shown in our turnaround efforts. These interest payments represent another step in addressing our financial situation and restoring our financial credibility."
As previously announced, on August 12, 2003, HealthSouth paid $117 million to its lending banks and the trustees under its indentures, representing payment of all past due interest owed by the Company under its various borrowing agreements.
HealthSouth is the nation's largest provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, with nearly 1,700 locations in all 50 states and abroad. HealthSouth can be found on the Web at www.healthsouth.com .
For more information contact Andy Brimmer at 205-410-2777.
SOURCE HealthSouth Corporation
CONTACT: Andy Brimmer of HealthSouth Corporation, +1-205-410-2777
Web site: healthsouth.com
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