HealthSouth Corp., Birmingham, Ala., said it has caught up on $117 million in past due interest payments and intends to keep current with upcoming payments as they come due. The company said asset sales and improved cash flow from its operations allowed it to generate a cash reserve of $445 million before the interest payments resumed. HealthSouth suspended interest payments on its more than $3 billion in debt in late March after the alleged accounting fraud at the company became publicly known. The company also said it is negotiating an exchange offer with holders of $344 million in bonds that were due for principal repayment on April 1. The company also has asset sales pending, such as the announcement last week that the company will sell its 281-bed HealthSouth Doctors' Hospital, Coral Gables, Fla., for undisclosed terms to Baptist Health South Florida, Coral Gables. -- by Vince Galloro
HealthSouth current on interest payments
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