Alvarez & Marsal

When federal agents raided HealthSouth Corporation’s headquarters in March 2003 to
investigate allegations of massive accounting fraud, many predicted the healthcare giant
would implode under the weight of scandal. Management was in turmoil. The stock plunged,
while major note payments loomed. Insolvency seemed inevitable. Under Alvarez & Marsal’s
leadership, however, HealthSouth defied expectations. Within months, Alvarez & Marsal
determined the company’s true financial picture, began shoring up business operations and
averted a bankruptcy filing. Working closely with the board in interim management roles
including Chief Restructuring and Chief Financial Officers, Alvarez & Marsal: cooperated
fully with investigators; untangled a massive web of accounting chicanery; restructured
operations; renegotiated leases under the direction of Alvarez & Marsal’s Real Estate Advisory
Services Group; restored vital relationships with employees, physicians, vendors and
insurance companies; and executed an unprecedented financing transaction. This transaction,
conceived by Alvarez & Marsal’s Corporate Finance Group, eliminated constricting debt obligations. Back on track, the nation’s largest provider of outpatient surgery, diagnostic
testing and rehabilitation services is heading toward complete recovery.