ModivCare Cleared to Exit Bankruptcy, Ending Valuation Fight (1)

ModivCare Inc. gained court approval to exit bankruptcy in a bid to shed more than $1 billion in debt, overriding objections from unsecured creditors who said the Colorado-based medical transportation company was undervalued.

ModivCare’s valuation of its assets and projected revenue was reasonable, Judge Alfredo R. Pérez said during a Friday hearing in the US Bankruptcy Court for the Southern District of Texas, even though professionals hired by the junior creditors reached vastly different results.

There was an acknowledged $33 million error in a portion of the analysis done by Zul Jamal, a managing director at Moelis & Co. retained ...