HealthSouth sets Aug. 29 as record date for interest payment

New York, Aug. 13 - HealthSouth Corp. set Aug. 29 as the record date for payment of past-due interest to holders of its notes. Payment is expected to be made shortly after.

The Birmingham, Ala. healthcare services company also said that it has asked its banks to lift the payment blockage notice on its 10¾% senior subordinated notes due 2008 and convertible subordinated debentures so that holders can receive the interest.

HealthSouth announced Tuesday that it has paid $117 million to its bank lenders and the trustees for its notes as payment for past-due interest.

HealthSouth said it was able to make the overdue interest payments thanks to improving liquidity from operations and asset sales.

It also said it has begun talks with holders of its 3.25% convertible subordinated debentures on an exchange offer. HealthSouth owes $344 million in principal on the convertibles, which matured on April 1.

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