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InSight Takes Stock-for-Debt Plan to Bankruptcy Court
InSight Health Services Holdings Corp., a Lake Forest-based provider of medical scanning services that’s seeking to trade most of its shares for debt relief, has taken its plan to bankruptcy court.
InSight, which has yearly revenue of $300 million, filed for bankruptcy at the end of May. The company plans to press on with a plan to offer 90% of its common stock to creditors in exchange for $195 million worth of debt due in 2011.
InSight had been trying to sell debt holders on the plan outside bankruptcy court. The plan has the backing of more than two-thirds of its debt holders and all common stockholders, according to InSight.
