ModivCare’s Collapse: A Cautionary Tale for Equity Holders

The equity story of ModivCare has reached a devastating conclusion, with its shares now trading at a symbolic $0.01. This represents a catastrophic decline following the company's August 2025 bankruptcy filing. Delisted from the Nasdaq and now stranded on the OTC Pink market under the ticker MODVQ, this healthcare services provider is engaged in a desperate struggle for survival.

ModivCare initiated Chapter 11 bankruptcy protection on August 20, 2025, with the primary objective of eliminating $1.1 billion in debt from its balance sheet. This strategy, however, backfired spectacularly. The Nasdaq exchange removed the stock from its listings a mere eight days later, on August 28, 2025.

The company's shares, which once traded in dollars, first eroded to cents and have now collapsed to a single penny per share. The equity, for all practical purposes, has been rendered worthless.

Systemic Risk and Apollo's Involvement

The company's distress has now manifested within the broader financial system. On November 25, 2025, ModivCare's non-performing loans surfaced in a notable Significant Risk Transfer (SRT) transaction. These loans were predominantly acquired by Apollo Global Management.

This deal, structured by Deutsche Bank and originally marketed as a hedge for a $2 billion portfolio, confirms that ModivCare's severe debt issues have now landed on the desks of major asset managers. It highlights a precarious game being played with highly speculative financial derivatives.

Should investors sell immediately? Or is it worth buying ModivCare?

Executive Departure Amid the Crisis

As the company founders, key personnel are seeking safer harbors. Daniel B. Silvers, who served as a Director at ModivCare and chaired its Capital Committee, transitioned to the board of Civeo Corporation on November 26, 2025.

The move carries a note of bitter irony: the executive tasked with steering ModivCare's capital structure through its bankruptcy process simultaneously accepted a new role. Mr. Silvers had been responsible for the company's financial restructuring since April 2025.

The Financial Metrics Behind the Failure

Despite generating substantial revenue of $2.79 billion in 2024, ModivCare proved unable to manage its crushing debt burden. The downward spiral continued into the first quarter of 2025, with revenues contracting by 5 percent to $650.7 million.

The key data points paint a stark picture:
* Current Share Price: $0.01 (OTC Pink)
* Bankruptcy Filing: August 20, 2025
* Delisting Date: August 28, 2025
* Debt Transaction: Apollo SRT Portfolio (November 25, 2025)
* Board Change: Silvers joins Civeo (November 26, 2025)

While the implemented restructuring plan may potentially salvage the corporate entity, it is almost certain that existing common shareholders will be left with nothing. For them, the final outcome is clear.