Ameritrade (fka AMTD)

[FRED8]

Ron/HLSH, In case you have not seen this yet:

HLSH - HealthSouth Makes $117 Million Payment for All Past Due Interest Currently Outst.

/FROM PR NEWSWIRE ATLANTA 404-231-1814/
TO BUSINESS AND MEDICAL EDITORS:

HealthSouth Makes $117 Million Payment for All Past Due Interest Currently
Outstanding to Its Lenders and Noteholders

Announces Discussions to Pursue Exchange Offer for Convertible Subordinated
Debentures, Subject to Consent of Bank Lenders and Other Noteholders

BIRMINGHAM, Ala., Aug. 12 /PRNewswire-FirstCall/ -- HealthSouth
Corporation (OTC Pink Sheets: HLSH) today announced that, as a result of its
improving liquidity from its operations and asset sales, the Company has paid
$117 million, representing all past due interest currently owed under the
Company's various borrowing agreements. The Company said it currently intends
to pay upcoming interest payments.
The Company also announced that it has initiated discussions regarding an
exchange offer for its 3.25% Convertible Subordinated Debentures ("Convertible
Subordinated Debentures") which matured on April 1, 2003. A term sheet for
the proposed exchange offer was circulated last week to advisors to the
holders of the Company's Convertible Subordinated Debentures. The Company
owes approximately $344 million in principal to holders of its Convertible
Subordinated Debentures. The Company expects the exchange offer to be
conditioned upon, among other things, obtaining the requisite consents from
its bank lenders and other noteholders.
"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. "We appreciate the time our bank lenders and
noteholders have given us to address our financial situation. Thanks to their
support and patience, in just five months, we have been able to strengthen and
improve our liquidity while protecting and supporting our core clinical and
patient operations."
"We also believe today's announcement, in conjunction with the proposed
exchange offer, will help further restore our financial credibility. In turn,
we believe this will help to enhance HealthSouth's ability to make operational
improvements and implement growth initiatives," concluded Gordon.
HealthSouth said that it had $445 million of cash prior to the above
interest payments. This balance does not include any proceeds from pending
asset sales.
Credit Suisse First Boston LLC is serving as financial advisor to
HealthSouth.
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 .
This news release does not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such states.
Statements contained in this press release which are not historical facts
are forward-looking statements. In addition, HEALTHSOUTH, through its senior
management, may from time to time make forward-looking public statements
concerning the matters described herein. Such forward-looking statements are
necessarily estimates based upon current information, involve a number of
risks and uncertainties and are made pursuant to the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995. HEALTHSOUTH's actual
results may differ materially from the results anticipated in these forward-
looking statements as a result of a variety of factors. While it is
impossible to identify all such factors, factors which could cause actual
results to differ materially from those estimated by us include, but are not
limited to: the investigations by the Department of Justice and the Securities
Exchange Commission into our financial reporting and related activity calling
into question the accuracy of our previously filed financial statements; our
statement that as a result of the investigations, our previously filed
financial statements should no longer be relied upon and may result in us
restating our prior financial statements; the withdrawal by our former
accountants of their audit reports on all of our previously filed financial
statements; the outcome of pending litigation relating to these matters;
significant changes in our management team; our ability to successfully
amend, restructure and/or renegotiate our existing indebtedness or cure or
receive a waiver of the events of default under such agreements, the failure
of which may result in our filing of a voluntary petition for bankruptcy; our
ability to continue to operate in the ordinary course and manage our
relationships with our creditors, including our lenders, bondholders, vendors
and suppliers, employees and customers; changes, delays in or suspension of
reimbursement for our services by governmental or private payors; changes in
the regulation of the healthcare industry at either or both of the federal and
state levels; changes to or delays in the implementation of the prospective
payment system for inpatient rehabilitation services; competitive pressures in
the healthcare industry and our response thereto; our ability to obtain and
retain favorable arrangements with third-party payors; general conditions in
the economy and capital markets; and other factors which may be identified
from time to time in our SEC filings and other public announcements.

For more information contact Andy Brimmer at 205-410-2777.

SOURCE HealthSouth Corporation

/CONTACT: Andy Brimmer of HealthSouth Corporation, [phone]/

/Web site: http://www.healthsouth.com /

Aug-12-2003 16:40 GMT
Symbols:
US;HLSH
Source PRN PR Newswire
Categories:
NWR/AL NWI/HEA NWI/MTC NWI/BIO NWI/OTC MST/R/US/AL MST/I/HEA
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