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
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
"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
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