ModivCare Looks to Cover Costs for Bankruptcy Exit Loan Talks

ModivCare Inc. sought permission to cover costs incurred by firms it’s negotiating with to fund a revolving loan that will assist the bankrupt medical transportation company’s plan to exit bankruptcy.

ModivCare on Tuesday asked the US Bankruptcy Court for the Southern District of Texas to let it reimburse two lenders for fees and expenses associated with a loan of up to $250 million that is central to a pending Chapter 11 plan. Dollar figures and the lender entities were redacted.

The lender-backed bankruptcy plan, scheduled to be considered for court approval next month, is designed to reorganize ModivCare’s businesses while ...