ModivCare Inc.'s proposed bankruptcy exit plan drew objections from insurers, the Justice Department’s bankruptcy-monitoring unit, and a committee of unsecured creditors that said the terms are insufficient to move forward.
The Colorado-based medical transportation company aims to shed more than $1 billion in debt through a “distribution scheme” based on a false premise that it’s worth one-third of what it was valued at a year ago, the committee said in a Tuesday filing in the US Bankruptcy Court for the Southern District of Texas.
“The debtors’ pessimistic projections and constant denigrating of their business are driven entirely by management and ...