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 / Healthcare Equipment & Services

MModal Holdings Plan Filed

MModal Holdings filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, the Debtors estimate that there will approximately $4 - $7 million of allowed administrative claims, $24.1 million of allowed professional fee claims and $0.5 - $1 million of allowed priority tax claims. In addition, general unsecured claims (including noteholder claims) will receive a 1% - 8% recovery, with a midpoint recovery of 3.4%. The Debtors estimate approximately $277.3 million of allowed general unsecured Claims (including $266 million of allowed noteholder claims). Subordinated claimants will receive no distribution under the Plan. The Disclosure Statement further explains, “In addition to, or instead of the foregoing transactions, the Debtors, subject to the prior written consent of the First Lien Agent and the Required Consenting Holders, may, and at the direction of the First Lien Agent and the Required Consenting Holders, will, cause any of the Debtors or the Reorganized Debtors to engage in additional corporate restructuring transactions necessary or appropriate for the purposes of implementing the Plan, including, without limitation, converting corporate entities into limited liability companies, forming new entities within the corporate organizational structure of the Debtors or Reorganized Debtors, cancelling the existing equity at another of the Debtor entities and issuing new equity therefrom, merging, dissolving or transferring assets between or among the Debtors and the Reorganized Debtors, including Reorganized Holdings.” The Court scheduled a July 15, 2014 hearing to consider the Plan and objections must be filed on or before July 3, 2014.

Read more Bankruptcy News