On Thursday, ModivCare Inc. MODV jumped 32.14% in after-hours trading to $0.74 per share following the healthcare services company’s announcement of a Chapter 11 bankruptcy filing paired with a $100 million investment commitment from secured lenders.

Check out the current price of MODV stock here. 

The technology-enabled healthcare services provider filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas as part of a comprehensive restructuring transaction. More than 90% of First Lien Lenders and over 70% of Second Lien Lenders have entered into a Restructuring Support Agreement (RSA) with the company.

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The restructuring will eliminate approximately $1.1 billion in outstanding funded debt obligations, representing more than 85% of total debt. This dramatic debt reduction will significantly lower annual cash interest payments while transferring ownership to seasoned investors committed to the company’s long-term success.

Secured lenders have committed $100 million in debtor-in-possession (DIP) financing to support ongoing operations during the bankruptcy process. Upon closing, ModivCare will maintain liquidity exceeding $100 million.

“This recapitalization strengthens our balance sheet and allows Modivcare to accelerate our investment in innovation,” said Heath Sampson, CEO and President. The company expects to exit restructuring by early fourth quarter.

All ModivCare service lines—including non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring (RPM)—will operate without interruption. The company has filed motions to meet obligations to clients, vendors, transportation providers, and employees during the restructuring process.

Price Action: MODV stock dropped 69.73% to $0.56, down $1.29 today, according to Benzinga Pro data.

Benzinga's Edge Stock Rankings indicates MODV stock has a negative price trend across all time frames.  Here is how the stock fares on other parameters.

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