ModivCare Avoids Default With Last-Minute Deal Lenders Urged
- Bank lenders granted covenant relief to medical transport firm
- Firm has faced stock, bond pricing tumult over last few weeks
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Medical transportation firm ModivCare Inc. scored a reprieve from its banks to avert a technical debt default after slow payments left it short on cash. It came just in time.
A group of creditors had asked the company to secure such concessions by the end of September, according to people familiar with the discussions, and their own negotiations to gain protections on debt they provided in June put them in a position to make demands.