Modivcare Inc., a technology-enabled healthcare services company, received a Nasdaq delisting notice following the commencement of voluntary proceedings under Chapter 11 of the United States Bankruptcy Code.
The company plans to undergo expedited bankruptcy proceedings to implement a restructuring transaction aimed at strengthening its future, reducing debt, and injecting capital.
Despite the Chapter 11 filing, Modivcare expects all service lines to continue operating as usual with no interruptions in care access and a focus on operational excellence.
Delisting Notice
Nasdaq commenced proceedings to delist Modivcare's common stock due to the Chapter 11 filing on August 20, 2025.
Supportive Restructuring
The restructuring transaction has the support of a supermajority of Modivcare's key stakeholders.
Nasdaq Compliance
Modivcare is out of compliance with Nasdaq Listing Rule 5250(c)(1) due to a delinquency in filing the quarterly report on Form 10-Q for June 30, 2025.
- Trading in Modivcare's common stock will be suspended on Nasdaq, with the expectation of the stock being quoted on the OTC Pink Market.
- The company advises caution regarding trading its securities during the Chapter 11 proceedings, highlighting the speculative and risky nature of such trading.
Modivcare faces challenges with the Nasdaq delisting following the Chapter 11 filing. However, the company aims to proceed with the restructuring transaction to maintain operations and focus on improving health outcomes.