Latham & Watkins Represents Modivcare in Confirmed Plan to Restructure US$1.4 Billion of Total Debt Obligations

"Latham & Watkins advised Modivcare Inc. and certain affiliates on confirmation of a Chapter 11 plan by the US Bankruptcy Court for the Southern District of Texas after a contested valuation trial. The restructuring addresses about US$1.4 billion of total debt and reduces funded debt by approximately US$1.1 billion, improving liquidity and capital structure for the company's emergence."

Latham & Watkins advised Modivcare Inc. and certain of its affiliates in connection with the contested confirmation of their Chapter 11 plan of reorganization before the US Bankruptcy Court for the Southern District of Texas. The court confirmed the company's Chapter 11 plan following a week-long contested valuation trial against the official committee of unsecured creditors. During the trial, Modivcare successfully defended its valuation, the proposed releases and the overall restructuring path. The confirmed plan implements a comprehensive deleveraging that addresses approximately US$1.4 billion of total debt obligations and reduces the company's funded debt by approximately US$1.1 billion. The transaction positions Modivcare to emerge with substantially lower leverage, enhanced liquidity and a stronger capital structure to support future growth. Latham & Watkins represented Modivcare Inc. and certain of its affiliates with a team composed by: Restructuring partners Ray C. Schrock, Keith Simon and George Klidonas; Litigation & Trial partners Jamie Wine and Betsy Marks; and members of Latham’s liability management, corporate, healthcare, regulatory and tax teams.

Latham & Watkins Represents Modivcare in Confirmed Plan to Restructure US$1.4 Billion of Total Debt Obligations

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