HealthSouth Corp., Birmingham, Ala., said bank lenders have agreed to allow the company to make $24 million in overdue interest payments to holders of its subordinated debt. The payments are part of $117 million in past due interest that HealthSouth earlier this month said it would pay. In March, the company halted interest payments and delayed paying $344 million in bonds due for principal repayment April 1. Its action came shortly after allegations of massive accounting fraud at the company became public. HealthSouth said earlier this month that it is negotiating an exchange offer on the April 1 bonds. -- by Vince Galloro
HealthSouth resolves part of interest payment problem
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