Modivcare Exits Bankruptcy as Private Firm, Slashes Debt by $1.1 Billion
Healthcare logistics provider completes swift restructuring, ends public trading, and secures $100 million in fresh capital from its new owners.
Modivcare Inc. has successfully emerged from Chapter 11 bankruptcy as a private entity, completing a rapid financial overhaul that erased more than $1.1 billion in debt and injected $100 million in new capital. The company, a key provider of non-emergency medical transportation and in-home care services, is now owned by a consortium of its former lenders.
The move concludes a swift, pre-packaged bankruptcy process that began with a voluntary filing in August 2025. Following the filing, Modivcare's common stock was delisted from the Nasdaq exchange. The successful restructuring, announced Monday, reduces the company's total debt load by over 85%, creating a significantly stronger balance sheet and providing enhanced liquidity to fund future operations.
In a statement regarding the court's approval of the restructuring plan, Modivcare CEO L. Heath Sampson framed the process as a strategic step toward long-term stability. "We engaged in this restructuring to build a stronger, more sustainable organization to meet the critical needs of our members and we are pleased to have reached this significant milestone," Sampson said in a December 12 announcement. "We look forward to completing this process and continuing our commitment to providing excellent service."
The reorganization effectively handed control of the Denver-based company to its key lenders through a debt-for-equity swap, a common outcome in such proceedings. For former public shareholders, the emergence from Chapter 11 marks the end of the road. As part of the approved plan, the company's old common stock was canceled, and it is no longer publicly traded.
Modivcare provides critical supportive care solutions, including managing transportation for Medicaid and Medicare members to get to medical appointments and providing in-home personal care for seniors and disabled adults. The company has emphasized that throughout the restructuring process, all services have continued without interruption and will carry on as normal under the new private ownership.
With its debt burden drastically reduced and an infusion of fresh capital, the newly private Modivcare is positioned to operate with greater financial flexibility. The company can now focus on operational performance and strategic growth in the healthcare logistics and services sector without the pressure of its previous high-leverage capital structure. This financial stability could make it a more formidable competitor in the specialized healthcare services market.