M*Modal wins court approval of stock transfer notification procedures

By Caroline Salls

Pittsburgh, May 9 - M*Modal Inc. received court approval of the notification procedures for the transfer of some equity securities, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the procedures, any substantial shareholder must file notice of that status either within 20 days of Friday's order or within 10 days of becoming a substantial shareholder.

In addition, notice must be given of any potential transfer of shares that would increase or decrease a substantial shareholder's holdings or result in a holder becoming a substantial shareholder or no longer being a substantial shareholder.

The company and its credit facility agent and noteholders will have 21 days to object to any proposed transfer. If an objection is filed, the transfer cannot be completed without a final court order.

Any transfer that does not comply with the procedures will be considered null and void.

According to the order, a substantial shareholder is one that owns at least 4½% of the company's stock.

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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