Private equity-backed M*Modal files for bankruptcy

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court 5_sqPrivate equity-backed medical transcription and speech recognition company M*Modal has filed for bankruptcy.

M*Modal, which is owned by One Equity Partners, currently has assets and liabilities of between $500m and $1bn, according to Reuters.

The company is currently in talks with its lenders about a restructuring agreement.

It said it had enough cash to fund its operations during the restructuring process.

M*Modal was taken private by US private equity firm One Equity Partners in a $1.1bn deal in July 2012. Last month it was reported that the company was heading for default on loans of around $520m.

Last year One Equity Partners spun out from JP Morgan as the financial services group looked to reduce its alternative assets exposure.

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