Modivcare Inc. announced on August 20, 2025, that it has filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. This action is intended to implement a comprehensive restructuring transaction with the support of a supermajority of its key stakeholders.
The company has entered into a Restructuring Support Agreement (RSA) with over 90% of First Lien Lenders and more than 70% of Second Lien Lenders. These lenders have committed to provide $100 million in debtor-in-possession (DIP) financing to support ongoing operations during the expedited bankruptcy process.
The restructuring aims to reduce Modivcare's total outstanding funded debt obligations by approximately $1.1 billion, representing more than 85% of its outstanding funded debt. This process is expected to meaningfully reduce annual cash interest and transition ownership to a group of seasoned and well-funded investors.
Modivcare expects all its service lines, including non-emergency medical transportation, personal care services, and remote patient monitoring, to continue operating in the ordinary course without interruption. The company intends to exit the restructuring process early in the fourth quarter of 2025, aiming to build a stronger, sustainable organization.
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