SOURCE: M*Modal Inc

July 15, 2014 13:01 ET

M*Modal Receives Approval to Emerge From Chapter 11

FRANKLIN, TN--(Marketwired - Jul 15, 2014) - M*Modal, a leading provider of clinical documentation and Speech Understanding™ solutions, announced that it expects to emerge from Chapter 11 within three weeks following today's confirmation of the Company's Plan of Reorganization by the U.S. Bankruptcy Court for the Southern District of New York. The Plan provides for restructuring of the Company's debt, and has the support of substantial majorities of its lenders and bondholders. 

"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," said Duncan James, M*Modal's Chief Executive Officer. "With renewed financial strength, we will continue our focus on delivering innovative solutions to our healthcare customers and growing market share. We remain committed to providing the highest quality of clinical documentation and superior Speech Understanding solutions. We thank our customers and suppliers for their support throughout this process, as well as our employees for their dedication to M*Modal."

The Plan reflects the terms of M*Modal's previously announced agreement with its controlling bondholders and lenders on the terms of a financial restructuring plan. Once completed, this financial restructuring will strengthen the Company's balance sheet resulting from reducing its debt by more than 55 percent and establishing a capital structure supporting M*Modal's continued investment in clinical documentation services and solutions.

Mr. James added, "We thank our bondholders, lenders and their advisors who worked with us constructively to complete M*Modal's financial restructuring as quickly as possible."

About M*Modal

M*Modal is a leading healthcare technology provider of advanced clinical documentation solutions, enabling hospitals and physicians to enrich the content of patient electronic health records (EHR) or electronic medical records (EMR) for improved healthcare and comprehensive billing integrity. As one of the largest clinical transcription service provider in the U.S., with a global network of medical editors, M*Modal also provides advanced cloud-based Speech Understanding™ technology and data analytics that enable physicians and clinicians to include the context of their patient narratives into electronic health records in a single step, further enhancing their productivity and the cost-saving efficiency and quality of patient care at the point of care. For more information, please visit, Twitter, Facebook and YouTube.

Forward-Looking Statements

Information provided and statements contained in this press release that are not purely historical, such as statements regarding the anticipated timing of completing the previously announced court-supervised restructuring, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this press release and the Company assumes no obligation to update the information included in this press release. Statements made in this press release that are forward-looking in nature may involve risks and uncertainties. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, without limitation, specific factors discussed herein and in other public filings and press releases made by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this press release.

Contact Information

  • Contacts:

    Joe McNamara
    919 867-3526

    Michael Freitag / Meaghan Repko / Aaron Palash
    Joele Frank, Wilkinson Brimmer Katcher