On August 25, 2026, Trajector Holdings and its affiliates obtained a second interim order authorizing continued use of cash collateral, subject to an operating budget and lender protections. The order scheduled a final hearing for September 29. It followed the company's July Chapter 11 filing, when Chief Restructuring Officer Mark C. Healy reported approximately $62.9 million in outstanding secured principal after a founder dispute complicated refinancing.
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. The company provides disability-benefits services to veterans and Social Security claimants through two principal businesses, Trajector Medical and Trajector Disability. Its filing announcement said it intended to continue serving clients while addressing liquidity and debt pressures.
The filing followed a Delaware Chancery Court dispute over refinancing authority and the approaching maturity of a secured credit facility that lenders declined to extend further. Healy also attributed an approximately 60% year-over-year decline in Trajector Medical's first-half 2026 revenue primarily to legal and regulatory changes affecting its veterans' benefits services. Healy declaration.
According to the Healy declaration, the first business in the Trajector group was founded in 2014 by James S. Hill, II, Gina G. Uribe and Richard S. Blaser. At filing, Hill, a disabled Navy veteran, served as chief executive officer, and Uribe served as chief medical officer. They were Trajector Holdings' sole managers. The declaration describes a governance arrangement giving Uribe ultimate authority over technical medical-consulting operations and Hill ultimate authority over other business matters when the managers disagreed. At an August 15, 2024 meeting, the managers recognized Hill's authority to make business decisions; Uribe executed an addendum memorializing that determination. Healy declaration.
Healy said disputes in early 2026 consumed management time, generated instability and increased legal and administrative expenses, including fees paid to at least four outside law firms. A two-day mediation in April did not resolve the governance dispute. A prospective replacement lender required confirmation of Hill's authority to enter a new credit facility and make non-medical business decisions, but the principals could not agree on that confirmation. Healy explained that his account of these events rested on management discussions and records reviewed after his appointment as CRO. Healy declaration.
Trajector Holdings sued Uribe in Delaware Chancery Court on May 4, 2026. According to Healy, the court granted judgment on the pleadings from the bench on May 21 and entered a written order on May 22 confirming Hill's ultimate decision-making authority over new credit facilities and material transactions outside technical medical consulting, including Social Security Disability operations, when the managers did not unanimously agree. The company still had not completed a refinancing when it filed for bankruptcy. Healy declaration.
Deutsche Bank Credit Facility and Cash Collateral
The company's senior secured term loan facility arose from an April 14, 2021 Credit and Guaranty Agreement. Healy identifies Benefits Group Holdings as the borrower, Trajector Holdings and specified subsidiaries as guarantors, and Deutsche Bank AG New York Branch as administrative and collateral agent. The declaration names Regions Bank, Siemens Financial Services and Stifel Bank & Trust among the lenders. Initial term loans totaled $75 million; Regions later provided $20 million of incremental loans. Healy described liens on substantially all of the grantors' personal property, subject to exclusions. Healy declaration.
The original April 14, 2026 maturity was extended to May 29 under an April 9 amendment, then to July 28 under a June 3 amendment. The latter required monthly financial statements, rolling 13-week cash-flow forecasts and weekly lender calls. In mid-July, lenders advised the company that they would not extend maturity again. Healy declaration.
The filings report different principal balances. Healy reported approximately $62.9 million outstanding at the petition date, plus accrued interest, fees and other amounts. The August 25 order recites the lenders' assertion of approximately $59.44 million in petition-date principal, plus interest, costs and attorneys' fees. Neither cited passage reconciles the difference. The order expressly preserves challenges to claim amounts and lien validity, priority and extent. Healy declaration; second interim order.
The debtors' emergency financing motion sought permission to use cash collateral. The August 25 order records that the court entered an initial interim order on July 28 and grants further interim authority to fund operations listed in its attached budget. This relief permits use of existing collateral; it does not provide a new-money loan. Second interim order.
The budget permits a 10% variance for each week in the aggregate on a cumulative basis. Changes require Deutsche Bank's prior written consent or a court order. Authority ends at the earliest specified termination event, including the end of the scheduled final-hearing day, a court determination of material breach after notice and a hearing, dismissal or conversion, or 45 days after entry unless extended as provided in the order. The order scheduled the final hearing for September 29, 2026, at 3 p.m. Eastern, with objections or responses due September 22 at 4 p.m. Eastern. These are the dates set by the August 25 order.
Adequate protection includes replacement liens limited to the same extent, priority, kind and nature as the prepetition collateral; maintenance of insurance; interest payments at SOFR plus 5.25%; and payment of reasonable, documented Deutsche Bank expenses subject to a $50,000 weekly payment limit without further court order. The debtors must deliver biweekly variance reports and credit-agreement financial reporting. The order provides invoice-review and objection procedures and reserves the lenders' rights to assert a higher interest rate and additional fees as part of their claims. Second interim order.
Replacement liens are subject to professional-fee and statutory-fee carve-outs and exclude avoidance actions and their proceeds. The order also requires a weekly funded professional-fee reserve. If the lenders are determined to have been undersecured, the specified interest and fee payments are to be applied to principal. Deutsche Bank retains the right to oppose final approval or further extensions. Second interim order.
Refinancing Search and Cost-Cutting Before the Filing
Healy reported that Trajector executed a letter of intent with a prospective lender in March 2026 but could not resolve outstanding issues before filing. The company also explored a statutory division separating Trajector Disability's business, assets and liabilities from Trajector Medical, allowing a prospective lender to use the disability business as primary collateral. Existing lenders did not support that strategy, and the company did not pursue it. Investment banker Tunstall Consulting contacted more than 50 potential alternative lenders during June and July without producing a refinancing by the petition date. Healy declaration.
The company suspended member profit distributions and reduced headcount in early 2026. Trajector Medical settled the separate Warriors false-advertising litigation in February and significantly curtailed advertising expenditures in June. Healy described these measures as part of the company's effort to conserve cash and adjust operations. Healy declaration.
Regulatory Headwinds and the VA Accreditation Class Actions
At filing, Healy described statutes in 28 states addressing veterans' benefits services: 12 prohibiting compensation to unaccredited companies, 12 permitting fees subject to consumer protections, and four focused on disclosures. He reported that Trajector Medical had suspended services to veterans in 23 states since 2024 where local laws prevented, severely limited or imposed undue risks on continued operations. These are the declaration's descriptions of the regulatory environment and the company's response at the petition date. Healy declaration.
Healy attributed an approximately 60% year-over-year decline in Trajector Medical's revenue for the six months ended June 30, 2026, primarily to those legal and regulatory changes. He reported that combined enterprise gross revenue declined approximately 46% over the same comparative period. Separately, the declaration reports approximately $279.8 million of full-year 2025 gross revenue and $81.5 million through June 30, 2026; those full-year and half-year totals are different reporting periods. Healy declaration.
The declaration also describes two putative class actions alleging that Trajector Medical lacked VA accreditation and unlawfully charged fees for assistance with disability claims. The Baker action was filed in Florida state court in March 2026, removed to the Northern District of Florida and stayed in connection with a motion to compel arbitration. The Quijada action was filed in California federal court in April, transferred to the Northern District of Florida in June and also stayed. Trajector filed its arbitration motion in that action on July 16. This account describes their procedural posture at the bankruptcy filing. Healy declaration.
Trajector disputed the allegations and said it would argue that its medical-evidence work did not require VA accreditation because it did not prepare, present or prosecute claims before the agency. The declaration presents the company's position, not a ruling resolving those allegations. Healy declaration.
Creditor Base and First-Day Relief
The debtors' consolidated list of 30 largest unsecured creditors lists a former employee's $523,471 claim first, followed by a disputed $284,202 OneSource Virtual claim. Listed vendors 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). Healy separately estimated total unsecured obligations at approximately $2.45 million in his petition-date declaration.
The court entered an order authorizing Trajector Holdings to operate as debtor in possession on July 23. A July 24 order authorized a consolidated case-management summary while preserving the U.S. Trustee's right to request separate summaries. The August 25 cash-collateral order identifies the cases as jointly administered under Trajector Holdings.
The company's filing announcement described requests to pay wages and benefits, pay critical vendors, maintain cash management and honor ordinary-course client and vendor obligations. That announcement describes requested relief, rather than establishing that each request was granted.
Company Structure and Operations
At filing, entities affiliated with Hill and Uribe each held approximately 44.7% of Trajector Holdings, while Richard Blaser Revocable Trust LLC held approximately 10.5%. Trajector Holdings owned Benefits Group Holdings, which held operating subsidiaries including Trajector Medical and Trajector Disability. Healy reported approximately 458 employees and 17 independent contractors, with principal operations in Florida and Utah. Healy declaration.
Trajector Disability, formerly Myler Disability, was rebranded in 2021 and assists clients with Social Security Disability Insurance and Supplemental Security Income claims. Healy declaration. The company's July 23 announcement identified Berger Singerman as counsel, Michael Moecker & Associates as financial and restructuring advisor, and Kurtzman Carson Consultants, doing business as Verita Global, as claims and noticing agent.
Frequently Asked Questions
Why did Trajector Holdings file for Chapter 11?
Healy cited an approaching secured-loan maturity, a governance dispute affecting refinancing, and revenue declines associated primarily with restrictions on veterans' benefits services. His declaration reported approximately $62.9 million in secured principal at filing. Healy declaration.
What did the Delaware Chancery Court decide?
According to Healy, its May 22, 2026 order confirmed Hill's ultimate authority over new credit facilities and material transactions outside technical medical consulting when the managers did not unanimously agree. Healy declaration.
Who is the claims agent?
The company's filing announcement identified Kurtzman Carson Consultants, LLC, doing business as Verita Global, as claims and noticing agent. Company announcement.
How is Trajector funding operations in Chapter 11?
The August 25 order authorizes interim use of cash collateral under a budget and adequate-protection terms. It scheduled a September 29 final hearing and preserved lender objections to final approval or extensions. It also expressly left claim amounts and lien validity, priority and extent unresolved. Second interim cash-collateral order.
Sources
second interim order authorizing continued use of cash collateral /documents/7952cd8d-59a3-4a11-bdcc-b91ccbaffbea/
$62.9 million in outstanding secured principal /documents/f0ae937e-d596-47f7-b33e-1bc4607a61d5/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.