M*Modal, the Franklin, Tenn.-based provider of medical transcription and clinical documentation software and services, has reduced its debt with a financial restructuring plan, the company announced this week.
The announcement comes a few weeks after M*Modal filed for Chapter 11 bankruptcy protection and had to complete a court-supervised restructuring within the 120 days after that announcement. With this financial restructuring plan, the company says it reduced its debt by more than 55 percent and established a capital structure that will allow it to continue investing various clinical documentation services and products.
“This agreement will dramatically reduce our debt, strengthen our balance sheet and provide the Company with significant financial flexibility,” Duncan James, M*Modal’s CEO said in a statement. “By reducing our debt by more than $350 million we will successfully align our capital structure with our strategy and operations, and position M*Modal for continued success. This agreement will accelerate the Company’s emergence from the financial restructuring process by providing a controlled and expedited roadmap to emergence."
Last year, for the Healthcare Informatics 100, it was estimated that the company's revenue was $450,722,000. According to Nashville Business Journal, the company has between $500 million and $1 billion in both liabilities and assets.
The agreement is subject to court approval.
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