Modivcare Inc. announced on October 1, 2024, that it has amended its Credit Agreement with JPMorgan Chase Bank, N.A., and other key lenders. This amendment ensures the company's compliance with all covenants for its last completed fiscal quarter.
In consideration for the amendment, Modivcare agreed to increase its interest rate margin by 25 basis points until it delivers the required financial statements and compliance certificate for the fiscal year ending December 31, 2024. The company also stated it would continue discussions for a collaborative long-term relief amendment.
Additionally, Modivcare successfully collected approximately $60 million in contract receivables that were previously reported as delayed. These collections are in addition to normal course cash collections and contribute to improving the company's immediate liquidity position.
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