M*Modal unsecured creditor committee seeks legal, financial adviser

By Kali Hays

New York, April 22 - M*Modal Inc.'s official committee of unsecured creditors requested court authorization to employ Stroock & Stroock & Lavan LLP and FTI Consulting as its legal counsel and financial adviser, respectively, according to individual motions filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

If approved, the committee asked that both hirings be retroactive to March 27.

Both Stroock and FTI were selected by the committee because of each firm's regarded reputation and experience in bankruptcy-related restructurings and past services to creditor committees.

Stroock will act as lead bankruptcy counsel for the committee through the company's Chapter 11 cases and will assist it in the investigation of M*Modal's financial condition, the committee's communications with the general body of creditors, its analysis of creditor claims and will attend meetings and court proceedings with and on behalf of the committee, according to the motion.

Stroock associates and partners responsible for the committee's needs will be paid an hourly wage between $395 and $1,125.

FTI will assist the committee in its review of financial documents supplied by the company, in its review of proposed debtor-in-possession financing, advise it on potential cost-saving plans and possible asset sales and/or mergers and acquisitions, according to the motion.

Consultants and directors from FTI will be paid hourly rates between $300 and $925.

A hearing to consider the hirings 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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