UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 14, 2004
HEALTHSOUTH Corporation
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-10315 63-0860407
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(Commission File Number) (IRS Employer Identification No.)
One HEALTHSOUTH Parkway, Birmingham, Alabama 35243
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(Address of Principal Executive Offices, Including Zip Code)
(205) 967-7116
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(Registrant's Telephone Number, Including Area Code)
ITEM 5. Other Events and Required FD Disclosure.
On April 15, 2004, HEALTHSOUTH Corporation issued a press release
entitled "HEALTHSOUTH ANNOUNCES FURTHER DEVELOPMENT WITH BONDHOLDERS".
A copy of the press release is attached hereto as Exhibit 99 and
incorporated herein by reference.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
See Exhibit Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
HEALTHSOUTH CORPORATION
By: /s/ Gregory L. Doody
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Name: Gregory L. Doody
Title: Executive Vice President,
General Counsel and Secretary
Dated: April 15, 2004
Exhibit Index
Exhibit No. Description
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99 Press release of HEALTHSOUTH Corporation dated April 15, 2004.
EXHIBIT 99
News From
[GRAPHIC OMITTED] HEALTHSOUTH(R)
FOR IMMEDIATE RELEASE
April 15, 2004
HEALTHSOUTH ANNOUNCES FURTHER
DEVELOPMENT WITH BONDHOLDERS
BIRMINGHAM, Ala. - HEALTHSOUTH Corporation (OTC Pink Sheets: HLSH) announced
that Judge Allwin Horn, III of the Circuit Court of Jefferson County, Alabama,
issued an order in the lawsuit between HEALTHSOUTH and some of its bondholders
setting a status conference for April 23rd to schedule an expedited hearing to
determine the merits of certain issues. In particular, these issues are the
validity of default notices purportedly given by certain bondholders and whether
HEALTHSOUTH is obligated to pay a "make-whole premium" under the facts and
circumstances of this case. Although the Court did not grant HEALTHSOUTH's
request for a preliminary injunction and dissolved its temporary restraining
order against acceleration by bondholders, it expressly stated that "the parties
should not consider that this Court has determined the Default Notices are
validly and legally issued".
Counsel for the bondholders stated in a letter to the Court that the bondholder
defendants would not issue any notice of acceleration for at least thirty days
so long as HEALTHSOUTH engages in good-faith negotiations with the bondholders
during that time. Joel C. Gordon, acting HEALTHSOUTH chairman of the Board of
Directors, said "We certainly will continue to negotiate in good-faith with the
representatives of the unofficial committee of bondholders, which hopefully will
lead to a consensual resolution which the Court indicated it believed would be
in the best interests of all involved." HEALTHSOUTH reiterated that it is
extremely encouraged by the significant positive response that it has received
so far and has decided to extend the consent solicitations through April 28,
2004 in order to allow all holders the opportunity to participate.
About HEALTHSOUTH
HEALTHSOUTH is the nation's largest provider of outpatient surgery, diagnostic
imaging and rehabilitative healthcare services, with nearly 1,700 locations
nationwide and abroad. HEALTHSOUTH can be found on the Web at
www.healthsouth.com.
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 HEALTHSOUTH include, but are not limited to:
the investigations by the Department of Justice and the Securities Exchange
Commission into HEALTHSOUTH's financial reporting and related activity;
HEALTHSOUTH's statement that as a result of the investigations, the Company's
previously filed financial statements should no longer be relied upon and may
result in the Company restating its prior financial statements; the withdrawal
by HEALTHSOUTH's former accountants of their audit reports on all of the
Company's previously filed financial statements; the outcome of pending
litigation relating to these matters; significant changes in HEALTHSOUTH's
management team; HEALTHSOUTH's ability to successfully amend, restructure and/or
renegotiate its existing indebtedness or cure or receive a waiver of alleged
defaults under such agreements, the inability of which may result in HEALTHSOUTH
filing a voluntary petition for bankruptcy; HEALTHSOUTH's ability to continue to
operate in the ordinary course and manage its relationships with its creditors,
including its lenders, bondholders, vendors and suppliers, employees and
customers; changes, delays in or suspension of reimbursement for HEALTHSOUTH's
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 the implementation of the prospective payment system for inpatient
rehabilitation services; competitive pressures in the healthcare industry and
HEALTHSOUTH's response thereto; HEALTHSOUTH's 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 the Company's SEC filings and other public announcements.
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For more information contact Andy Brimmer at 205-410-2777.