On Thursday, ModivCare Inc. MODV jumped 32.14% in after-hours buying and selling to $0.74 per share following the healthcare providers firm’s announcement of a Chapter 11 chapter submitting paired with a $100 million funding dedication from secured lenders.
Try the present worth of MODV inventory right here.
Complete Debt Restructuring Secures Future Operations
The technology-enabled healthcare providers supplier filed for voluntary Chapter 11 safety within the U.S. Chapter Court docket for the Southern District of Texas as a part of a complete restructuring transaction. Greater than 90% of First Lien Lenders and over 70% of Second Lien Lenders have entered right into a Restructuring Assist Settlement (RSA) with the corporate.
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The restructuring will get rid of roughly $1.1 billion in excellent funded debt obligations, representing greater than 85% of whole debt. This dramatic debt discount will considerably decrease annual money curiosity funds whereas transferring possession to seasoned traders dedicated to the corporate’s long-term success.
$100M DIP Financing Maintains Operational Continuity
Secured lenders have dedicated $100 million in debtor-in-possession (DIP) financing to help ongoing operations in the course of the chapter course of. Upon closing, ModivCare will preserve liquidity exceeding $100 million.
“This recapitalization strengthens our steadiness sheet and permits Modivcare to speed up our funding in innovation,” stated Heath Sampson, CEO and President. The corporate expects to exit restructuring by early fourth quarter.
Service Strains Proceed Uninterrupted
All ModivCare service traces—together with non-emergency medical transportation (NEMT), private care providers (PCS), and distant affected person monitoring (RPM)—will function with out interruption. The corporate has filed motions to satisfy obligations to purchasers, distributors, transportation suppliers, and staff in the course of the restructuring course of.
Value Motion: MODV inventory dropped 69.73% to $0.56, down $1.29 at present, in response to Benzinga Professional knowledge.
Benzinga’s Edge Inventory Rankings signifies MODV inventory has a detrimental worth pattern throughout all time frames. Right here is how the inventory fares on different parameters.
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
