MModal Inc., the medical-transcription company indirectly controlled by JPMorgan Chase & Co., won court approval of the rough terms of a plan to reorganize and will seek final approval July 15 to exit bankruptcy, Bloomberg News reported yesterday. Bankruptcy Judge Robert Grossman yesterday approved MModal’s disclosure statement, which explains how much creditors will get. The reorganized company is projected to earn $57 million before taxes and other items this year and $71 million a year by 2017, enough to support its new debt load of about $320 million in secured debt, according to court papers. MModal, acquired by New York-based JPMorgan’s One Equity Partners in a $1.14 billion leveraged buyout in August 2012, filed for bankruptcy on March 20. The Franklin, Tennessee-based company listed assets of $626.8 million and liabilities totaling $876.3 million. MModal struggled to make payments on the debt as software and other products supplanted its transcription business, which converts health care providers’ dictation to text and generated more than 80 percent of revenue.
