M*Modal seeks court approval to obtain $30 million in DIP financing

By Caroline Salls

Pittsburgh, April 23 - M*Modal Inc. requested court approval to obtain up to $30 million in debtor-in-possession financing, according to an April 22 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Royal Bank of Canada is the DIP financing and collateral agent.

Interest will be either Base rate plus 695 basis points with a 2.5% floor or Libor plus 795 bps with a 1.5% Libor floor.

The facility will mature on the earliest of Aug. 28, subject to a 60-day extension, the effective date of the company's plan of reorganization, the occurrence of a termination declaration date, the closing of a sale of all or substantially all company assets and the date the obligations are paid in full.

Proceeds will be used to fund working capital and specified other expenses during the company's Chapter 11 case.

A hearing is scheduled for May 6.

M*Modal, a Franklin, Tenn.-based provider of clinical documentation services, filed for bankruptcy March 20. The Chapter 11 case number is 14-10701.

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