Industry news
Modivcare Emerges from Chapter 11 Bankruptcy as a Private Company
On December 29, 2025, Modivcare Inc. came out of Chapter 11 bankruptcy. The U.S. Bankruptcy Court for the Southern District of Texas confirmed its reorganization plan on December 15, 2025, and the plan took effect two weeks later. The company is now privately owned by the lenders and other creditors who received its new shares. It says rides continued without interruption through the whole case.
What changed on December 29, 2025
Modivcare filed on August 20, 2025, with a restructuring deal its main lenders had already signed. The case is In re ModivCare Inc., et al., Case No. 25-90309 (ARP), in the court’s Houston Division.
| Item | What happened |
|---|---|
| Filing date | August 20, 2025 |
| Plan confirmed | December 15, 2025 |
| Plan effective | December 29, 2025, the day the company emerged |
| Debt | Funded debt cut by $1.1 billion, more than 85 percent, the company said on December 29, 2025 |
| New loans | A $100 million new-money loan and $300 million of takeback loans, both due in December 2030 |
| Ownership | Old shares canceled. Substantially all assets moved to ModivCare Buyer, LLC. New equity and warrants in its parent, ModivCare Topco, LLC, went to lenders, unsecured creditors, and others under the plan |
| Stock | Nasdaq suspended trading on August 28, 2025. On December 29, 2025, the company filed to end its SEC reporting and continue as a private company |
| Claims agent | Verita Global, at veritaglobal.net/ModivCare or 888-733-1521 |
In its December 29, 2025 release, Modivcare said it operated in the ordinary course during the case, with no interruption to services for clients, members, or providers.
Who it affects
The case mattered most to transportation providers that were owed money when Modivcare filed. In its first-day papers, Modivcare told the court it used about 4,100 transportation vendors, paid per trip or by mileage reimbursement, at a total cost of about $120 million a month. It estimated it owed them $91.6 million for work done before August 20, 2025.
Members did not need to do anything. On February 6, 2026, MaineCare told its members that nothing had changed for those who use Modivcare, and that they should keep calling it to book rides.
What happened to money owed for trips before August 20, 2025
A bankruptcy filing normally freezes debts from before the filing date. On its first day, Modivcare asked the court for permission to keep paying trade vendors, and it named transportation vendors as critical to its business.
| Date | Court step |
|---|---|
| August 20, 2025 | Trade claims motion (Docket No. 6) asks to pay prepetition trade claims, including an estimated $91.6 million owed to transportation vendors |
| August 21, 2025 | Interim order (Docket No. 64) allows those payments, capped at $99 million for all trade vendors until the final hearing |
| September 17, 2025 | Modivcare asks to pay above the cap. After reconciling invoices, most notably from transportation vendors, it estimated about $181 million of prepetition trade claims |
| September 18, 2025 | The court raises the interim cap to $150 million (Docket No. 334) |
| September 30, 2025 | The final order (Docket No. 394) lets Modivcare pay some or all prepetition trade claims at its discretion, with no overall dollar cap, subject to its court-approved budget |
| October 3 and 6, 2025 | The claims agent mails a cover letter for trip providers and mileage reimbursement recipients, with the interim and final orders |
In the September 17 motion, Modivcare said the higher total came from reconciling claims submitted before and after the filing, not from new debt. It said the payments were already in its court-approved budget.
The final order tied each payment to a condition. A vendor that accepted payment agreed to keep working on terms at least as good as those in place 180 days before the filing. If it stopped during the case, Modivcare could treat the payment as an unauthorized transfer and ask for it back. The vendor could contest that by asking for a court hearing. Modivcare could also settle a claim for less than its face amount before paying it.
How the plan treats claims that were not paid
If an invoice from before August 20, 2025 was not paid under those orders, it is a claim in the case. The court’s bar date order and the plan set the rules.
- The filing deadline was October 1, 2025, at 5:00 p.m. Central. That was the general bar date for claims from before the filing. A creditor that received notice late had 21 days from service. No claim was needed for an invoice paid in full under a court order, or one Modivcare’s schedules listed correctly and not as disputed.
- Unsecured claims are Class 4. Allowed general unsecured claims share, pro rata, 2 percent of the new common equity, before dilution, plus new warrants. Holders that were accredited investors or qualified institutional buyers could also buy into a rights offering of up to $200 million.
- Smaller claims had a cash option. A holder of an allowed claim under $1,000,000 could elect a pro rata share of a $32 million cash pool instead. That share is figured against all general unsecured claims, not only the holders who chose cash.
- Trips after the filing are paid in the ordinary course. Debts Modivcare ran up in normal business after August 20, 2025 are administrative claims, which the plan pays in the ordinary course. If one of those was still unpaid, the deadline to file a proof of administrative claim was February 5, 2026, unless it had already been paid in full or allowed.
- Contracts stayed in place unless rejected. Every contract not rejected was assumed on December 29, 2025. Past-due amounts under an assumed contract, called the cure, are paid in cash. A claim for damages from a rejected contract had to be filed within 21 days after service of the order approving the rejection.
The plan also says an assumed contract cannot be ended or changed because of the bankruptcy, the plan, or the change in ownership.
Claims still under review in 2026
As of December 15, 2025, Modivcare had received about 2,178 proofs of claim totaling about $6.1 billion. The plan gave the reorganized company 90 days after December 29, 2025 to object to claims, and the court can extend that.
| Date | Claims objection deadline |
|---|---|
| March 30, 2026 | First deadline under the plan |
| April 1, 2026 | Court extends it to June 29, 2026 |
| July 13, 2026 | Court extends it to September 27, 2026 |
| September 3, 2026 | Modivcare asks for December 28, 2026 (Docket No. 1763) |
In the September 3 motion, Modivcare said its objections had led to more than 800 claims being disallowed so far. It said some claims could not be resolved before the September 27 deadline and that more objections were coming.
The objections sort claims by problem. On March 26, 2026, six of them (Docket Nos. 1383 to 1388) asked the court to disallow claims filed after the bar date. On March 31, 2026, another (Docket No. 1398) targeted claims already paid through cure amounts. On September 24, 2026, four more targeted claims with too little documentation, blank claims, and invalid claims. Each objection warns that a claimant who does not respond within 30 days after service may have the claim disallowed without a hearing.
Modivcare’s state contracts since the bankruptcy
State programs have moved in both directions since the filing.
| State | What happened |
|---|---|
| Arkansas | DHS rescinded Modivcare’s Region G award in September 2025, citing the bankruptcy. On October 20, 2025, the State Procurement Director sustained Modivcare’s protest under 11 U.S.C. 525(a), which bars government discrimination based on a bankruptcy filing, and ordered the award reinstated. Pulaski, Faulkner, and Lonoke counties moved to Modivcare on January 2, 2026. See Arkansas Region G. |
| Georgia | Modivcare stopped arranging Medicaid rides in the Central, East, and Southwest regions on April 1, 2026. Verida now covers all five regions. See the Georgia switch. |
| Maine | Modivcare added the midcoast region on July 1, 2026: Waldo, Knox, Lincoln, and Sagadahoc counties plus Brunswick and Harpswell. See the midcoast change. |
| Montana | A July 9, 2026 state notice says DPHHS signed a new contract with Modivcare, with an anticipated start of October 1, 2026. See Montana’s move to Modivcare. |
What providers should do now
- Look up your claim. Search the claims register at veritaglobal.net/ModivCare, or call Verita. Check whether any objection lists your claim, including the ones filed in September 2026.
- Answer any objection on time. Read the schedule attached to any objection mailed to you. If you think it is wrong, file a written response within 30 days after service, with the invoices and trip logs that back the amount. A bankruptcy attorney can tell you whether to respond.
- Match payments to your invoices. Compare what Modivcare paid you after August 20, 2025 with your trip logs for earlier dates. A claim for invoices that were later paid can be disallowed as satisfied.
- Keep billing as usual. Your provider agreement continued unless it was rejected, so current trips are billed and paid under its terms. Our guide to billing NEMT brokers covers clean claims.
- Keep your records. Hold on to 2025 trip logs, invoices, and payment remittances until your claim is resolved.
- Spread your risk. When one broker sends most of your trips, its money trouble becomes yours. See how much revenue should come from one broker and how to manage NEMT cash flow.
For how to join Modivcare’s network and what it requires, see our Modivcare provider guide.
Who to contact
- Verita Global, the claims agent: 888-733-1521 (U.S. and Canada), 310-751-2636 (international), veritaglobal.net/ModivCare
- The court: U.S. Bankruptcy Court, Southern District of Texas, Houston Division, Case No. 25-90309 (ARP)