Trajector Holdings Files Chapter 11 as $62.9M Debt Matures

Trajector Holdings, LLC and 21 affiliated entities filed for chapter 11 protection on July 23, 2026 in the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division, before Judge Jacob A. Brown, under lead case No. 3:26-bk-03286-JAB. The Gainesville-based company provides disability-benefits advocacy services to veterans and Social Security claimants through two operating units, Trajector Medical and Trajector Disability.

The filing followed the near-simultaneous resolution of a Delaware Chancery Court fight between the company's two co-founders over who controlled refinancing decisions, combined with a maturing $62.9 million secured credit facility that lenders declined to extend further. A parallel pressure came from state legislation barring unaccredited firms from charging fees for veterans' benefits work, which the company said cut its medical-evidence unit's revenue by roughly 60% in the first half of 2026, according to the Declaration of Chief Restructuring Officer Mark C. Healy.

Debtor(s)	Trajector Holdings, LLC (22 jointly administered entities)
Court	U.S. Bankruptcy Court, Middle District of Florida (Jacksonville Division)
Case Number	3:26-bk-03286
Petition Date	July 23, 2026
Judge	Hon. Jacob A. Brown

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Founder Dispute and the Delaware Chancery Ruling

Trajector was founded in 2014 by James S. Hill, II, Gina G. Uribe, and Richard S. Blaser. Hill, a disabled Navy veteran, serves as chief executive officer, while Uribe serves as chief medical officer; the two act as Trajector Holdings' sole managers under a governance structure that splits authority by subject matter — Uribe controls technical medical-consulting decisions, while Hill controls "all other" business, financing, and strategic matters. For most of the company's history the arrangement worked, and on August 15, 2024, the two managers signed an addendum confirming Hill's authority over non-medical decisions, according to the Healy declaration.

That arrangement broke down starting in early 2026. According to the Declaration of Chief Restructuring Officer Mark C. Healy, disputes between Hill and members of company management on one side and Uribe on the other consumed "significant amounts of management time," generated instability, and drove legal fees at four outside law firms, even after a two-day mediation in April 2026 failed to resolve the impasse. The timing was costly: the company was simultaneously negotiating a replacement for its maturing Deutsche Bank credit facility, and the prospective new lender conditioned any deal on confirmation that Hill alone had authority to sign it. Uribe would not provide that confirmation.

With the credit facility's maturity approaching, Trajector Holdings sued Uribe in the Delaware Court of Chancery on May 4, 2026, seeking a declaration that Hill held ultimate authority over financing and other non-medical matters under the company's LLC agreement, the Healy declaration states. The Chancery Court agreed, granting judgment on the pleadings from the bench on May 21, 2026, and entering a written order the next day confirming that Hill has "ultimate managerial decision-making authority" over any new credit facility and all matters outside technical medical consulting, including the company's Social Security Disability operations. The ruling cleared the governance question but arrived too late to save the refinancing effort before the credit facility's final extended maturity.

Deutsche Bank Credit Facility and Cash Collateral

Trajector's funded debt centers on a senior secured term loan facility documented in an April 14, 2021 Credit and Guaranty Agreement among Benefits Group Holdings, Trajector Holdings, subsidiary guarantors, and Deutsche Bank AG New York Branch as administrative and collateral agent, according to the Healy declaration. The lenders — Deutsche Bank, Regions Bank, Siemens Financial Services, and Stifel Bank & Trust — funded $75 million of initial term loans in 2021, with Regions later adding $20 million of incremental term loans. The facility is secured by a first-priority lien on substantially all of the borrowers' personal property, including receivables, intellectual property, and deposit accounts.

The credit agreement's maturity, originally April 14, 2026, was pushed back twice as the company searched for a refinancing: a Sixth Amendment dated April 9, 2026 extended it to May 29, 2026, and a Seventh Amendment dated June 3, 2026 extended it again to July 28, 2026 while adding monthly financial reporting, rolling 13-week cash flow forecasts, and weekly lender calls, according to the Healy declaration. In mid-July 2026, the lenders told the company there would be no further extension. As of the petition date, the outstanding principal balance stood at approximately $62.9 million, an amount that would have come due in full against Trajector Holdings and its subsidiary guarantors absent the chapter 11 filing.

The debtors filed an emergency motion to use cash collateral on an interim basis, naming Deutsche Bank as agent and Regions, Siemens, and Stifel as lenders asserting interests in the collateral. The motion proposes an operating budget with a 10% weekly aggregate deviation cap absent lender consent or court approval, and offers replacement liens as adequate protection, subject to a carve-out for professional fees and U.S. Trustee charges; it does not propose a lien on avoidance actions. No separate cash-collateral order had been entered as of the docket review, so the relief remains pending rather than approved. The debtors did not seek new money debtor-in-possession financing, relying instead on cash collateral to fund operations.

Refinancing Search and Cost-Cutting Before the Filing

Trajector's efforts to avoid chapter 11 extended beyond the amendment schedule. In early 2026 the company made progress with a prospective replacement lender and executed a letter of intent in March 2026, but could not resolve outstanding issues before the facility's maturity, the Healy declaration says. The company also explored — but did not pursue — a statutory division that would have separated the Trajector Disability business from Trajector Medical to let a prospective lender collateralize only the disability unit; the Deutsche Bank lenders did not support that structure. Facing continued uncertainty, the company retained investment bank Tunstall Consulting, which contacted more than 50 potential alternative lenders during June and July 2026 without producing a refinancing transaction.

Operationally, the company suspended member profit distributions and reduced headcount in early 2026, and curtailed advertising spending in June 2026 to coincide with the Seventh Amendment, according to the same declaration. It also settled a separate false-advertising class action, the Warriors Litigation, in February 2026. CRO Mark Healy said in a company statement that "after reviewing all our options, we determined that Chapter 11 restructuring was the best path to continue operating and preserve value for stakeholders," while Hill said the process was intended to "strengthen our financial position" so the company could continue its benefits-advocacy mission.

Regulatory Headwinds and the VA Accreditation Class Actions

Trajector Medical's core business — developing medical evidence to support veterans' VA disability claims — has come under pressure from a wave of state legislation. Twenty-eight states have enacted statutes addressing veterans'-benefits services, split roughly evenly between "GUARD Acts" in 12 states that bar unaccredited companies from charging fees for veterans' benefits work, and "SAVE Acts" in 12 states that permit such fees subject to caps and disclosure requirements; four additional states impose narrower disclosure-only rules. Since 2024, Trajector Medical has suspended services to veterans in 23 states where local law prevents or unduly restricts its model. The Healy declaration states that Trajector Medical's revenue fell approximately 60% year-over-year for the first half of 2026 as a result, while the combined enterprise's revenue declined approximately 46% over the same period — against 2025 full-year gross revenue of approximately $279.8 million and $81.5 million realized through June 30, 2026. Companion federal bills, the SAFEGUARD Act and the CHOICE Act, remain pending in Congress and could reshape the accreditation landscape further.

The company also faces two putative class actions alleging that Trajector Medical is not VA-accredited and unlawfully charged fees for assisting with disability claims, according to the Healy declaration. The first, filed in Florida state court in March 2026 and removed to the Northern District of Florida, was stayed pending a ruling on Trajector Medical's motion to compel arbitration. The second, filed in the Central District of California in April 2026 on behalf of proposed nationwide and California classes, was transferred to the Northern District of Florida in June 2026 and assigned to the same judge; Trajector filed its own motion to compel arbitration on July 16, 2026, with plaintiffs' response due August 6, 2026. The company disputes the claims and intends to argue that its medical-evidence work does not require VA accreditation because it does not prepare, present, or prosecute claims before the agency.

Creditor Base and First-Day Relief

The debtors' consolidated list of 30 largest unsecured creditors identifies a former employee's $523,471 claim as the largest scheduled unsecured obligation, followed by a disputed $284,202 claim from OneSource Virtual Inc. Trade and technology vendors on the list include Amazon Web Services ($168,966.78), Brex ($159,919), Media Science ($78,377.16), Twilio ($14,148.38), and Thomson Reuters ($4,637.74). Separately, the debtors estimate approximately $298,303.56 in prepetition obligations to critical vendors whose services they consider essential to ongoing operations, and approximately $492,700 in unpaid sales, income, and other taxes as of the petition date.

The court entered a standard order authorizing the debtor in possession to continue operating on the petition date, and on July 24, 2026 entered an order authorizing the debtors to file a consolidated case-management summary rather than separate filings for each of the 22 debtors. The debtors also sought joint administration of the cases for procedural purposes only, with Trajector Holdings designated the lead case, along with authority to pay prepetition wages and continue employee benefit programs, honor critical-vendor obligations, maintain the existing cash management system, and continue affiliate-officer compensation for Hill and Uribe at prepetition levels. The debtors retained CRO Mark C. Healy and other personnel from Michael Moecker & Associates, Inc. under a first-day retention application, with Healy having been appointed CRO on June 22, 2026, ahead of the filing.

Company Structure and Operations

Trajector Holdings' equity is held primarily by entities affiliated with Hill (approximately 44.7%) and Uribe (approximately 44.7%), with a trust affiliated with Blaser holding approximately 10.5%, the Healy declaration states. The Delaware limited liability company operates as a holding company for Benefits Group Holdings, LLC, which in turn owns the bulk of the operating subsidiaries, including Trajector Medical and Trajector Disability. As of the petition date, the company employed approximately 458 employees and 17 independent contractors, with principal operations in Florida and Utah. The company's estimated liabilities exceed its estimated assets.

Trajector Disability, originally known as Myler Disability before a 2021 rebrand, assists clients with Social Security Disability Insurance and Supplemental Security Income claims, a business line not subject to the VA accreditation disputes affecting Trajector Medical. The debtors are represented by Berger Singerman LLP, with Edward J. Peterson III and Jordi Guso appearing as counsel, and have proposed Verita Global (Kurtzman Carson Consultants, LLC) as claims and noticing agent, the company said.

Frequently Asked Questions

Why did Trajector Holdings file for chapter 11?

The company cited the approaching maturity of its $62.9 million Deutsche Bank credit facility, an unresolved governance dispute between co-founders James Hill and Gina Uribe that delayed refinancing efforts, and a roughly 60% revenue decline at its Trajector Medical unit tied to state legislation restricting fees for unaccredited veterans'-benefits services.

What did the Delaware Chancery Court decide?

On May 22, 2026, the court entered an order confirming that CEO James Hill holds ultimate decision-making authority over financing and other non-medical business matters under the company's LLC agreement, resolving a dispute with co-manager Gina Uribe that had complicated the company's refinancing search.

Who is the claims agent for Trajector Holdings?

Verita Global, operating as Kurtzman Carson Consultants, LLC, has been proposed as claims and noticing agent. The debtors' first-day motion for entry of a bar-date order and notice procedures remains pending before Judge Brown.

Is Trajector Holdings using DIP financing?

No new-money debtor-in-possession facility has been sought. The debtors requested interim authority to use cash collateral from Deutsche Bank and the other prepetition lenders, subject to a proposed operating budget and replacement liens as adequate protection; that request was pending as of the initial docket review.

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