Dive Brief:

Medical transportation firm ModivCare filed for bankruptcy in the the southern district of Texas last week, following a monthslong effort to financially course correct in the face of mounting headwinds.

Under the restructuring deal , ModivCare expects to receive $100 million through debtor-in-possession financing and to slash its debt levels by approximately 80%, or $1.1 billion. The agreement will also transfer the majority of ownership to a consortium of ModivCare’s investors.

MotivCare received a delisting notice from the Nasdaq following its bankruptcy filing. Trading of the company’s common stock will be paused beginning Aug. 28 , and ModivCare could be delisted shortly after, the company said Friday.

Dive Insight:

Bankruptcy filings have been elevated

See Full Page