A group of HealthSouth Corp. bondholders said it would not try to demand early repayment of the company's debt for at least 30 days, so long as good-faith negotiations continue. Embroiled in a $2.7 billion accounting scandal, Birmingham, Ala.-based HealthSouth is in technical default of bond terms because it hasn't filed required financial statements. At issue is its $26 million offer to bondholders to ignore the violations. Jefferson County District Court Judge Allwin Horn on Wednesday refused HealthSouth's request for a preliminary injunction and dissolved a temporary restraining order blocking the bondholders from taking action on the debt. He scheduled an April 23 status conference on the negotiations. HealthSouth said it would continue to work with bondholders to reach a consensual resolution, "which the court indicated it believed would be in the best interests of all involved." -- by Julie Piotrowski
HealthSouth, bondholders back at negotiating table
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