M*Modal’s financial woes may be coming to end as the Franklin, Tenn.-based provider of medical transcription and clinical documentation software and services has received regulatory approval to emerge from Chapter 11 bankruptcy.
The company’s financial restructuring plan, which reduced its debt and agreed upon by controlling bondholders and lenders, was approved by the the U.S. Bankruptcy Court for the Southern District of New York. In March, M*Modal filed for Chapter 11 bankruptcy protection and had to complete a court-supervised restructuring within the 120 days after that announcement. The plan 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.
“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,” Duncan James, M*Modal’s Chief Executive Officer, said in a statement.