Modivcare Inc. announced entering into a restructuring agreement to strengthen its financial position.
The company filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The restructuring aims to reduce debt, inject capital, and position the company for sustainable growth.
Financial Restructuring
The restructuring will reduce the company's total debt obligations by over $1.1 billion, representing more than 85% of its outstanding debt.
Support of Lenders
More than 90% of First Lien Lenders and over 70% of Second Lien Lenders have committed to provide $100 million in financing to support ongoing operations.
Business Continuity
All service lines will continue to operate without interruption, ensuring access to care and operational excellence.
- The restructuring process aims to strengthen Modivcare's balance sheet and accelerate investments in innovation.
- With supermajority support from key stakeholders, Modivcare seeks to transition ownership to well-funded investors committed to its success.
Modivcare's strategic restructuring positions it for sustainable growth in the healthcare sector, maintaining focus on client service and operational excellence.