Lake Forest-based InSight Health Services Holdings Corp., which runs medical imaging centers and provides diagnostic services to hospitals and doctors’ offices, has filed for bankruptcy reorganization for the second time since 2007.
The company filed for a prepackaged reorganization designed to eliminate about $290 million in debt due in 2011.
Most of the holders of the company’s bonds have signed off on the deal, according to Insight.
InSight had $140 million in assets and $320 million in debt as of Nov. 15.
The company’s bondholders are set to own 100% of Insight after the reorganization.
The plan also calls for payment of some unsecured creditors.
Insight hopes to emerge from bankruptcy quickly, according to the company.
It seems to be following the same tack as it did in 2007, when Insight filed and quickly emerged from bankruptcy reorganization.
At that time, InSight traded traded 90% of its common stock to bondholders, who in turn forgave $195 million worth of debt due in 2011.
InSight Health runs 62 imaging centers and 104 mobile facilities that call on hospitals and doctors. The facilities offer magnetic resonance imaging and other diagnostic scans.
The company’s business has been hit by the soft economy, high unemployment and industry issues.
Third-quarter revenue, excluding recent acquisitions and sales, fell 11% from a year earlier to $44 million.
Adjusted earnings before interest, taxes, depreciation and amortization fell 17% to $7 million.
