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: May 1, 2003
HEALTHSOUTH Corporation
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-10315 63-0860407
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State or Other (Commission (I.R.S. Employer
Jurisdiction of Incorporation File Number) Identification No.)
or Organization)
One HEALTHSOUTH Parkway
Birmingham, Alabama 35243
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's Telephone Number,
Including Area Code: (205) 967-7116
Item 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On May 1, 2003, HEALTHSOUTH Corporation issued the following press
release:
FOR IMMEDIATE RELEASE
MAY 1, 2003
HEALTHSOUTH CONTINUES DISCUSSIONS
WITH LENDERS AND NOTEHOLDERS
BIRMINGHAM, Alabama - HealthSouth Corporation (OTC Pink Sheets:HLSH) announced
today that it remains in discussions with the lenders under its credit facility
and representatives of its senior noteholders and certain of its subordinated
indebtedness, even though its previously disclosed forbearance agreement with
its credit facility lenders has now expired and it has failed to make required
interest payments on any of its outstanding indebtedness beyond applicable grace
periods. HealthSouth also said that it had determined to terminate the remaining
unavailable commitments under its credit facility to avoid incurring additional
commitment fees. Based on its regular and continuing discussions, HealthSouth
believes that its lenders and noteholders are unlikely to initiate legal action
against the Company at this time and will continue to work with the Company
while PricewaterhouseCoopers and Alvarez & Marsal complete their review of
HealthSouth's financial condition.
HealthSouth noted that it has not entered into a new forbearance agreement with
the lenders under its credit facility or with the holders of any other
indebtedness and, therefore, that no assurance could be given that any of its
lenders, noteholders or other creditors would not seek to enforce their
respective rights.
The Company said that its Board of Directors, together with outside advisors, is
working to maintain the stability of its operations and restore HealthSouth's
long-term viability.
"The Board of Directors is working diligently to develop a plan for
HealthSouth's future," said Interim Chief Executive Officer Robert P. May. "Our
operations continue to be strong, and we have ample liquidity for our current
operations. HealthSouth's nearly 50,000 employees across the country are focused
on the right things - treating our patients and providing outstanding clinical
outcomes. Our Board and new management team will continue to focus HealthSouth's
resources on our core business of healthcare."
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, the United Kingdom, Australia, Puerto Rico, Saudi Arabia and
Canada. 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, including those identified in this press release and in the public
filings made by HealthSouth with the Securities and Exchange Commission,
including HealthSouth's Annual Report on Form 10-K for the year ended December
31, 2001 and its Quarterly Reports on Form 10-Q, and forward-looking statements
contained in this press release or in other public statements of HealthSouth or
its senior management should be considered in light of those factors. There can
be no assurance that such factors or other factors will not affect the accuracy
of such forward-looking statements.
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FOR MORE INFORMATION CONTACT ANDY BRIMMER AT 205-410-2777.
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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.
Date: May 1, 2003.
HEALTHSOUTH CORPORATION
By /s/ WILLIAM W. HORTON
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William W. Horton
Executive Vice President
and Corporate Counsel