ModivCare Emerges from Bankruptcy as Private Entity, Equity Wiped Out

ModivCare US60783X1046

ModivCare Inc. has formally concluded its Chapter 11 bankruptcy proceedings, exiting court protection as of December 29, 2025. The restructured company is now privately owned by its former creditors, marking a definitive end to its status as a publicly traded entity. The confirmed reorganization plan transferred ownership, severing the company's connection to the public stock ticker MODVQ.

Key Restructuring Outcomes:
* Exit Date: December 29, 2025
* New Structure: Private ownership (creditor-controlled)
* Debt Reduction: Approximately $1.1 billion in debt was eliminated.
* Exit Financing: The company secured $100 million in new funding to support its operations post-bankruptcy.

While the corporate restructuring has successfully stabilized ModivCare's core non-emergency medical transport and home care services by shedding over 85% of its liabilities, it resulted in a total loss for common shareholders. In Chapter 11 cases of this magnitude where creditors assume control, existing equity holders are typically wiped out. This outcome is now reflected in the market price of the former shares.

The Lingering "Zombie Stock" Phenomenon

Despite the company's privatization, its old ticker symbol, MODVQ, continues to see sporadic trading on over-the-counter (OTC) markets. This "zombie stock" scenario occurs when shares of a reorganized company continue to change hands before final delisting procedures are complete.

Recent Trading Data (as of January 7, 2026):
* Price Range: ~$0.01 - $0.02
* Trend: Trading near zero
* Valuation: The shares hold no intrinsic value relative to the operating business.

The current price of less than two cents underscores the market's view that these securities are worthless, with an expectation that the shares will soon be canceled. All remaining trading activity is purely speculative.

The situation is now clear: ModivCare operates as a solvent private company, while the MODVQ ticker represents a valueless financial instrument with no claim on the revitalized business.