M*Modal Files for Chapter 11

M*Modal, a medical dictation and speech solutions provider owned by  J.P. Morgan Chase's private-equity arm, One Equity Partners, yesterday filed for Chapter 11 bankruptcy protection, citing mounting debt and declining sales.

The company said that it expects to use the Chapter 11 process to align its debt structure with its vision, strategy, and operations to better position it. M*Modal also said its worldwide operations are expected to continue as normal throughout the restructuring process.

"Throughout this process we are not changing our operational execution or strategy, and our operations will continue as normal," said Duncan James, M*Modal’s CEO, in a statement. "We intend to emerge with a strong financial footing so we can continue growing our market share and delivering innovative solutions to our customers."

The company expects that its cash on hand, combined with funds generated from ongoing operations, will provide sufficient liquidity to continue operating as normal throughout this process.

The company, which is based in Franklin, Tenn., reportedly employs more than 9,900 workers in six countries and counts more than 3,800 hospitals, clinics, and medical practices as its clients.

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