Executives at clinical documentation company M*Modal said Wednesday they expect to bring the company out of Chapter 11 bankruptcy proceedings by early August, less than five months after filing to restructure its finances.
Franklin-based M*Modal on Wednesday received confirmation of its reorganization plan from the U.S. Bankruptcy Court for the Southern District of New York. In April, officials said they had struck a deal with lenders and bondholders to cut $350 million of debt.
"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 CEO. "We thank our bondholders, lenders and their advisors who worked with us constructively to complete M*Modal's financial restructuring as quickly as possible."
M*Modal's restructuring will cut its debt by more than 55 percent. The company had been acquired in mid-2012 by a private-equity firm under the JPMorgan Chase umbrella.