Not a member of the CFO Mafia

HealthSouth’s financial officer testifies

Apparently, HealthSouth debtholders are seeking accelerated repayment of their loans. Maybe they’re afraid that the people running the company will commit massive fraud or something. Anyway, the acting CFO says that if they keep it up the company will probably go into bankruptcy. In which case, if I understand correctly, the shareholders are even more screwed and the bondholders will get to sell off anything they want to get their money back. (I may be wrong about that — I don’t really understand this money stuff.)

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One response to “Not a member of the CFO Mafia

  1. In general, as I understand it, debt takes precedent over share ownership in bankruptcy proceedings. There are limits to how the assets are sold off, though.

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