Financial Accounting Blog

Friday, June 18, 2004

HealthSouth. HealthSouth has settled it's dispute [noted previously here] with bondholders. You can read about the premium they are giving to the bondholders of 7.625% notes. After HealthSouth failed to issue audited financial statements the bondholders called due the principal of the bonds. Healthsouth has been negotiating with the bondholders to avoid having to come up with the full principal payment. The company has enough cash to pay the interest and a premium (consent fee) but the principal might force them into bankruptcy.
HealthSouth Corp. today announced that more than a majority in principal amount of the holders of its 7.625% Senior Notes due 2012 have delivered consents to approve proposed amendments to, and waivers under, the indenture governing such notes.