HealthSouth Remains in Negotiations with Bondholders; Receives Notice of Technical Default
HealthSouth Remains Committed to Pursuing Fair Value for All Stakeholders
BIRMINGHAM, Ala., Nov 3, 2003 /PRNewswire-FirstCall via COMTEX/ -- HealthSouth Corporation (OTC Pink Sheets: HLSH), which previously announced that it has initiated discussions and submitted term sheets to its creditors providing for the restructuring of the Company's outstanding indebtedness, today said that it has received a notice of technical default purportedly from the requisite holders of certain of its senior notes and its senior subordinated notes. Once notice has actually been received, the notes provide for a cure period, following which these noteholders would have the right to accelerate payment of the outstanding principal amount of these notes.
The Company stated that it is current on all interest payments due to its bank and noteholders. The Company also reiterated it intention to remain current on all upcoming interest payments.
"We have presented all of our creditors with term sheets and are awaiting their response," said Joel C. Gordon, HealthSouth's Interim Chairman. "While there are natural tensions that arise in any negotiation process, today's action we believe is a very public tactic by the holders of these notes to try to extract greater value at the expense of our other stakeholders. We firmly believe that there is equity value in HealthSouth and we are unwilling simply to give more shareholder value away to our bondholders than is fair. We will continue to do what is right for the benefit of all HealthSouth stakeholders."
HealthSouth is the nation's largest provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, operating nearly 1,700 facilities nationwide 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
Andy Brimmer of HealthSouth Corporation, +1-205-410-2777
healthsouth.com
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