| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for HealthSouth Corp. > News item |
HealthSouth to decide on bankruptcy after audit is completed
By Carlise Newman
Chicago, May 30 - HealthSouth Corp. told employees Friday it would have a clearer picture of whether the company would file for bankruptcy after its audit is completed and its turnaround firm finishes reviewing the corporate balance sheet.
HealthSouth said PricewaterhouseCoopers is making progress in its forensic review of the company's accounting records, and will likely finish by the end of June, allowing the company to produce new audited financial statements.
"The review of our business operations by Alvarez & Marsal, our turnaround firm, continues to move forward. Alvarez & Marsal is continuing to 'scrub' our corporate balance sheet, fix any problems identified and look for ways to reduce corporate spending while still supporting our core patient operations," HealthSouth said in a letter to employees that was also filed with the Securities and Exchange Commission.
The company said it eliminated overhead positions at the corporate office, bringing the corporate organizational design and support structure down to a size appropriate for the company's operations across the country.
"Once Alvarez & Marsal and PwC have finished their work, we will have a much clearer picture of the company's true earnings power and our ability to service the approximately $3.3 billion of debt we have at the corporate level," the letter contined.
"At that time, we will be in a position to develop a restructuring plan for the company," HealthSouth said. "Whatever course we take to fix the financial side of our business, in our out of bankruptcy court, we expect - and you should expect - that HealthSouth will continue to operate uninterrupted."
HealthSouth is a Birmingham, Ala.-based hospital and physical therapy company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.