March 20 Medical transcription company M*Modal filed for bankruptcy protection on Thursday as the firm owned by J.P. Morgan Chase & Co's private-equity arm seeks to reduce debt.
M*Modal, which was taken private by One Equity Partners in a $1.1 billion all-cash deal in 2012, listed assets and liabilities in the $500 million to $1 billion range in its bankruptcy petition.
"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," Duncan James, M*Modal's chief executive said in a statement.
M*Modal said it is in "constructive discussions" with its lenders and bondholders regarding the terms of a consensual financial restructuring plan.
The company said it expects cash on hand, combined with funds generated from ongoing operations, to provide sufficient liquidity to continue operating through the restructuring process.
The case is In re: MModal Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No: 14-10700. (Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier)