Franklin, Tenn.-based medical transcription technology company M-Modal says it expects to emerge from bankruptcy in the next three weeks. M-Modal filed for bankruptcy protection in March
, less than two years after it was acquired for a reported $1.1 billion by an investment unit linked to J.P. Morgan Chase & Co.
A company reorganization and debt restructuring plan was approved last week by the U.S. Bankruptcy Court in New York City, M-Modal said in a release
. The plan has the backing of most of the company's lenders and bondholders, according to the release. It is designed to cut company debt by more than 55%, the company said.
“We are pleased to have reached this important final milestone, and look forward to emerging from the financial restructuring process which will dramatically reduce our debt, strengthen our balance sheet and provide significant financial flexibility,” said Duncan James, M-Modal's CEO. “With renewed financial strength, we will continue our focus on delivering innovative solutions to our healthcare customers and growing market share.”
M-Modal provides medical transcription services, speech recognition and natural language processing technology.
In August 2011, MedQuist Holdings, Franklin, bought M-Modal for $48.1 million in cash at closing; another $28.8 million in cash payments over the next three years; $13 million in fees and other transaction costs; and 4.1 million shares of MedQuist Holdings' common stock.
M-Modal next was acquired and taken private in August 2012 by an affiliate of One Equity Partners, the private investment arm of JPMorgan Chase & Co., for a reported $1.1 billion.
M-Modal lists among its clients more than 3,800 hospitals, clinics and physician practices. Its core speech technology business has come under pressure from a range of newer technologies.Follow John N. Frank on Twitter: @MHJFrank