Medical Transportation Firm Modivcare Files for Bankruptcy

Medical transportation firm Modivcare Inc. filed for bankruptcy in an effort to shed $1.1 billion of debt, after federal health-care funding cuts threatened to crimp future cash flows.

The company filed for Chapter 11 in the US Bankruptcy Court for the Southern District of Texas on Wednesday, according to a statement. Bloomberg previously reported that Modivcare was weighing a Chapter 11 filing.

Read More: Medical Transport Firm ModivCare Mulls Debt Restructuring

A group of first-lien and second-lien lenders have agreed to provide $100 million of debtor-in-possession financing, which will be used to support operations during the process, according to the ...