Case filing & court posture: ModivCare Inc., a Denver-based healthcare services company providing non-emergency medical transportation (NEMT), personal care services, and remote patient monitoring to approximately 87 million trips annually across 48 states, filed chapter 11 on August 20, 2025 in the Southern District of Texas. Dkt. 1 Judge Alfredo R. Perez presides over the case (Case No. 25-90309).
Liquidity & financing path: The debtors obtained a $100 million DIP financing facility to support operations through the restructuring. Dkt. 52 The court approved an interim DIP order on August 21, 2025, followed by a final DIP order on October 6, 2025. Dkt. 463 The case was driven by an unsustainable capital structure with approximately $1.42 billion in funded debt, industry headwinds from Medicaid reimbursement pressures, and the expiration of temporary COVID-era rate increases.
Restructuring outcome: The debtors confirmed a plan-based reorganization on December 15, 2025. Dkt. 1055 The plan implemented a debt-for-equity swap that reduced funded debt from approximately $1.4 billion to $300 million, with first lien lenders receiving 98% of new common equity and general unsecured creditors receiving 2% of new equity plus warrants. Existing equity interests were cancelled.
Plan effective date & emergence: The plan became effective on December 29, 2025, allowing the reorganized company to emerge from chapter 11 with a significantly deleveraged balance sheet and continued operations serving Medicaid and Medicare populations nationwide.