ModivCare Stock Surges 55% Amid Chapter 11 Restructuring Plan

ModivCare (MODV) shares soared 55% in pre-market trading after the healthcare services provider filed for Chapter 11 bankruptcy, revealing a restructuring agreement supported by key lenders. The deal includes $100 million in debtor-in-possession financing and aims to slash $1.1 billion in debt while maintaining operations.

Over 90% of first-lien and 70% of second-lien lenders backed the restructuring support agreement (RSA), which the company claims will create a leaner organization positioned for growth in non-emergency medical transport and remote patient monitoring services.

The dramatic price swing follows a 70% single-day drop earlier this week, highlighting extreme volatility as traders digest the implications of the prepackaged bankruptcy. ModivCare expects to emerge with reduced interest obligations and enhanced liquidity.