ModivCare Creditors Question $3.6 Million in Bankruptcy Fees

Lenders of bankrupt medical transportation company ModivCare are considering a challenge to $3.6 million in fees and expenses charged by White & Case LLP and AlixPartners LLP over three weeks in September.

The firms, which are advising the unsecured creditors’ committee in ModivCare’s bankruptcy, have collectively incurred fees and costs at an “extraordinary burn rate” over a short period, a group of first-lien and second-lien lenders said in a filing Wednesday in the US Bankruptcy Court for the Southern District of Texas.

The lenders said recent compensation requests confirmed concerns they previously voiced about the pace and magnitude of fees. ...