HealthSouth blocks bondholder payments

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One year after the Securities and Exchange Commission charged HealthSouth Corporation with accounting fraud, the provider of rehabilitative health-care services is battling bondholders to prevent repayment on an accelerated schedule and avoid the possibility of bankruptcy.

The company announced that Judge Allwin Horn of the Circuit Court of Jefferson County recently denied its request for a preliminary injunction and suspended its temporary restraining order against accelerated payments. Yet, the

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