Debt Cut, Ownership Shift on the Horizon
The restructuring blueprint is ambitious: Modivcare aims to slash 85% of its funded debt obligations, equating to $1.1 billion, and dramatically reduce its annual debt service payments. In exchange, ownership of the firm will shift to a consortium of existing investors, signaling a dramatic transfer of corporate control as the price of survival.
Court Proceedings and Legal Counsel
A first-day hearing is scheduled for Thursday afternoon before U.S. Bankruptcy Judge Alfredo Perez.
Guiding the healthcare company through its restructuring are powerhouse advisers: Latham & Watkins LLP and Hunton Andrews Kurth LLP as bankruptcy counsel, with Moelis & Company LLC and FTI Consulting handling financial advisory duties.
