Court Refuses to Enter Injunction Against Bondholders
Birmingham, Alabama (April 14, 2004) — A Jefferson County Circuit Court judge today refused to block HealthSouth Corporation’s bondholders from seeking accelerated payments on more than $2 billion in senior debt. In its widely watched decision, the Court dissolved a temporary restraining order that had been entered on March 11, 2004, and held that HealthSouth had failed to demonstrate a likelihood of success on the merits of its claims.
Lightfoot, Franklin & White was retained to represent the bondholders and several indenture trustees after the temporary restraining order was entered. Glenn Waldrop, William Brooks and Chips Pruet opposed HealthSouth’s request for a preliminary injunction in a two-day hearing on March 30 – 31, 2004.