Filing Alert: ModivCare Chapter 11
ModivCare Files Chapter 11 in Southern District of Texas
ModivCare Inc. and its debtor affiliates⁽¹⁾, a Denver, CO-based provider of supportive care solutions, filed for Chapter 11 protection on Aug. 20 in the U.S. Bankruptcy Court for the Southern District of Texas.
The prearranged filing is backed by a restructuring support agreement with holders of ~90% of first-lien debt and ~70% of second-lien notes, targeting a ~$1.1 billion deleveraging (to ~$300 million). The deal includes a backstopped $100 million DIP (to roll into an exit term loan), an up to $250 million exit revolver, and an equity rights offering for unsecured noteholders and other general unsecured creditors, with milestones for a swift confirmation.
The company reports $1 billion to $10 billion in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-90309.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
RSA Case Milestones
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Co-Counsel:
- Timothy A. (Tad) Davidson II
- Hunton Andrews Kurth LLP
- Email: taddavidson@hunton.com
Co-Counsel:
- Latham & Watkins LLP
Financial Advisor / Chief Transformation Officer:
- FTI Consulting, Inc. (Chad J. Shandler)
Investment Banker:
- Moelis & Company LLC
Claims Agent:
Equity Security Holders:
- Coliseum Capital Management LLC – 31.4% Equity Interest
- AI Catalyst Fund, LP – 14.9% Equity Interest
- Neuberger Berman Investment Advisors LLC – 10.3% Equity Interest
- Scepter Holdings, Inc. – 8.5% Equity Interest
- Other Minority Holders – 34.9% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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