AMERICAS DISTRESS DAILY: ModivCare Mulls Restructuring Debt

ModivCare Debt woes mount as federal health-care funding cuts weigh on its long-term outlook, and the company is considering a potential restructuring of its debt load. A possible Chapter 11 filing is among the options under consideration.

• ModivCare faces significant debt, with roughly $1.4 billion of debt, including a revolving facility that comes due in 2028 and a $75 million term loan due in early 2026.
• The company’s reliance on Medicaid funding has been impacted by Republican lawmakers’ administrative changes, including the introduction of a biannual process of redetermining eligibility, which has already taken a toll on ModivCare’s margins.

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