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Modivcare Receives Nasdaq Delisting Notice Following Chapter 11 Filing Amid Restructuring Plans
ByAinvest
Friday, Aug 22, 2025 5:04 pm ET1min read
Modivcare Inc. has received a Nasdaq delisting notice following its Chapter 11 filing. The company's common stock will be suspended on August 28, 2025, and is expected to be delisted. Modivcare will continue to operate in the ordinary course, with no interruption or change in access to care. The company received a notice from Nasdaq indicating it is out of compliance with Listing Rule 5250(c)(1) due to the delinquency in filing its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2025.
Modivcare Inc. (NASDAQ: MODV), a healthcare services provider, has received a Nasdaq delisting notice following its Chapter 11 bankruptcy filing. The company's common stock will be suspended at the opening of business on August 28, 2025, and is expected to be delisted from Nasdaq. The suspension and potential delisting come as a result of Modivcare's failure to comply with Nasdaq Listing Rule 5250(c)(1) due to the delinquency in filing its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2025 [3].Modivcare's Chapter 11 filing was announced on August 20, 2025, with the company seeking to restructure its balance sheet and reduce its debt by approximately $1.1 billion. The restructuring aims to lower annual interest costs and transfer ownership to experienced investors committed to long-term success. The company secured $100 million in fresh financing from its lenders to keep operations running during the court process [2].
The restructuring plan, which has the support of a supermajority of key stakeholders, is projected to be completed by early in the fourth quarter of 2025. Modivcare expects to emerge from bankruptcy with a more sustainable capital structure and continue its operations uninterrupted, with no change in access to care [1, 2, 3].
Despite the delisting notice, Modivcare's service lines, including non-emergency medical transportation, personal care services, and in-home monitoring solutions, are expected to continue operating in the ordinary course. The company has stated that it does not intend to appeal Nasdaq's decision and anticipates that its common stock will commence trading on the OTC Pink Market following delisting [3].
Investors are cautioned that trading in Modivcare's securities during the pendency of the Chapter 11 cases is highly speculative and poses substantial risks. The company has warned that trading prices may bear little or no relationship to the actual recovery by holders of the Company's securities in the Chapter 11 Cases [3].
References:
[1] https://investorshub.advfn.com/market-news/article/15104/modivcare-stock-crashes-40-following-chapter-11-bankruptcy-filing
[2] https://www.ainvest.com/news/modivcare-soars-73-57-bankruptcy-filing-debt-restructuring-2508/
[3] https://www.businesswire.com/news/home/20250822175803/en/Modivcare-Receives-Nasdaq-Delisting-Notice-Following-Chapter-11-Filing
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