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InSight Health Services files for Chapter 11 bankruptcy with prepackaged plan

WASHINGTON – InSight Health Services Holdings Corp., which provides medical imaging services, has filed for Chapter 11 bankruptcy protection with a “prepackaged” reorganization plan.

Lake Forest, Calif.-based company listed assets and debts of more than $100 million each in its Chapter 11 petition, made Tuesday at the U.S. Bankruptcy Court in Wilmington, Del.

The company is owned by two private equity firms, J.W. Childs Equity Partners L.P. and Halifax Capital Partners.

The plan, supported by more than two-thirds of the company’s senior subordinated notes and the shareholders, would give noteholders 90 percent of the reorganized company’s common stock in exchange for about $194.5 million of notes.

The shareholders will receive the remaining 10 percent of the new common stock.

AFCO Premium Acceptance Inc. was listed as the company’s second-largest unsecured creditor – behind the noteholders – with a $948,053 claim for insurance premium funding.