Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

MModal Holdings Chapter 11 Petition Filed

MModal Holdings and 13 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 14-10700. The Company, which provides healthcare-related speech, coding, imaging and transcription services, is represented by Allan S. Brilliant, Shmuel Vasser and Jeffrey T. Mispagel of Dechert. MModal states that it expects to use the proceeding to align “debt structure with its vision, strategy and operations to better position the Company for long-term success.” The Company explains that it “has been - and remains - in constructive discussions with its lenders and bondholders regarding the terms of a consensual financial restructuring plan and is focused on achieving a resolution as expeditiously as possible.” Duncan James, the Company’s chief executive officer, comments, “…[T]here is a need to restructure the Company’s balance sheet to better align with changing market dynamics and refinements to our strategy. We intend to use the Court process to significantly strengthen M*Modal’s balance sheet and improve the Company’s financial flexibility by reducing our debt burden and establishing a capital structure that supports our investment in the future. Throughout this process we are not changing our operational execution or strategy, and our operations will continue as normal. Importantly, we will continue what we are known for: providing innovative technologies and offering healthcare providers a superior choice when selecting their clinical documentation and speech understanding technology partner. M*Modal has solid revenue, strong operating margins, cash flows consistent with industry norms, a large and growing customer base, and we are continuing to invest in the future. We intend to emerge with a strong financial footing so we can continue growing our market share and delivering innovative solutions to our customers.”

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