Filing Alert: Trajector Chapter 11

Update (July 24, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Trajector Holdings, LLC.

Trajector Holdings, LLC and its debtor affiliates⁽¹⁾, a Saint Augustine, FL-based provider of medical evidence and advocacy services for disability benefit claims, filed for Chapter 11 protection on Jul. 23 in the U.S. Bankruptcy Court for the Middle District of Florida.

The company attributes its distress principally to escalating regulatory and legislative headwinds affecting Trajector Medical’s VA medical-evidence-development business. As of the petition date, 28 states had enacted statutes addressing veterans' benefits matters, including 12 "GUARD Act" states prohibiting compensation to unaccredited entities and 12 "SAVE Act" states imposing consumer-protection conditions such as fee caps, disclosure mandates, and restrictions on relationships with medical professionals. Since 2024, Trajector Medical had suspended services to veterans in 23 states, primarily contributing to an approximately 60% year-over-year decline in its revenue for the period ended June 30, 2026, and an approximately 46% decline in the debtors' combined gross revenue over the same period. Proposed federal legislation — the SAFEGUARD Act, which would reinstate criminal penalties for certain fee-related activities by unaccredited entities, and the competing CHOICE Act, which would establish a two-tiered VA accreditation pathway for for-profit entities — added further uncertainty to the company's operating model.

Compounding the regulatory pressure, Trajector Medical faced two putative class actions (the Baker and Quijada actions, both since stayed pending motions to compel arbitration) alleging it unlawfully charged fees for VA-claim assistance without VA accreditation. Concurrently, a governance dispute between co-founders and sole managers James S. Hill, II (CEO) and Gina G. Uribe (CMO) over the allocation of decision-making authority impaired the company's financing efforts; a prospective replacement lender had conditioned its facility on confirmation of Mr. Hill's authority over nonmedical matters, which the principals could not agree upon. The dispute was resolved in Mr. Hill's favor through a May 2026 Delaware Court of Chancery judgment on the pleadings confirming his ultimate managerial authority over new credit facilities and other non-medical-consulting matters.

The filing follows the debtors’ inability to refinance the approximately $62.9 million outstanding under the senior secured term loan facility for which Deutsche Bank AG New York Branch (DBNY) serves as administrative and collateral agent. The obligations are secured by first-priority security interests in substantially all personal property of the grantors. After successive extensions of the original April 14, 2026, maturity to May 29 and then July 28, 2026, and a June–July 2026 marketing process in which investment banker Tunstall Consulting contacted more than 50 potential alternative lenders without producing a transaction, the lenders advised in mid-July 2026 that they would not extend further. Absent an executable refinancing, the 22 debtors filed to stabilize operations and pursue a value-maximizing restructuring.

Trajector Holdings, LLC reports $10 million to $50 million in assets and $100 million to $500 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-03286.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

Counsel:

• Edward J. Peterson
  Berger Singerman LLP
  Email: epeterson@bergersingerman.com

Financial Advisor / CRO:

• Michael Moecker & Associates (Mark C. Healy)

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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