M*Modal, a Franklin, Tenn.-based provider of medical transcription and clinical documentation software and services, is filing for Chapter 11 bankruptcy protection, the company announced this week.
The company will use the process to "align the company's debt structure with its vision, strategy and operations to better position the company for long-term success." It says it has been in conversations with lenders and bondholders regarding terms of the financial restructuring plan. It does not expect business to be interrupted by this process and expects that its cash on hand and funds generated from ongoing operations will provide enough liquidity to continue on as normal.
“When M*Modal was taken private in 2012, the acquisition was financed with a capital structure aligned with a specific set of assumptions that are no longer relevant. As a result, there 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," Duncan James, M*Modal’s Chief Executive Officer, said in a statement.
Last year, Healthcare Informatics estimated that its revenue was $450,722,000. According to Nashville Business Journal, the company has between $500 million and $1 billion in both liabilities and assets.