ModivCare Soars 73.57% on Bankruptcy Filing, Debt Restructuring

On August 22, 2025, ModivCare's stock surged by 73.57% in pre-market trading, marking a significant rise that has caught the attention of investors and analysts alike.

ModivCare has filed for Chapter 11 bankruptcy protection, aiming to restructure its debt and strengthen its financial foundation. The company has secured support from a supermajority of its key stakeholders, including more than 90% of First Lien Lenders and over 70% of Second Lien Lenders, who have agreed to provide $100 million in debtor-in-possession financing to support ongoing operations during the restructuring process.

Despite the bankruptcy filing, ModivCare has assured that all of its service lines will continue to operate without interruption, ensuring that clients, members, employees, and transportation providers will not be affected. The company's CEO, Heath Sampson, emphasized that this recapitalization will allow ModivCare to accelerate its investment in innovation and technology, positioning it to lead the future of coordinated care.

The restructuring is expected to reduce ModivCare's total outstanding funded debt obligations by approximately $1.1 billion, which is more than 85% of its outstanding funded debt obligations. This move is aimed at reducing the company's annual cash interest and transitioning ownership to a group of seasoned and well-funded investors committed to ModivCare's success.