SCHEDULE: AI Catalyst Fund's Gonzales Resigns ModivCare Board

AI Catalyst Fund's David Mounts Gonzales has resigned from ModivCare Inc.'s Board of Directors, with the fund intending to continue engagement on the company's Chapter 11 restructuring.

Summary

• David Mounts Gonzales resigned from ModivCare Inc.'s Board of Directors, effective November 9, 2025.
• AI Catalyst Fund, LP, The AI Catalyst Fund GP, LLC, and David Mounts Gonzales (collectively, "Reporting Persons") beneficially own 2,130,000 shares of ModivCare common stock.
• The Reporting Persons' beneficial ownership represents 14.9% of ModivCare Inc.'s common stock.
• The Reporting Persons intend to continue communications with ModivCare's Board regarding their investment and interests as stockholders, particularly concerning the company's previously announced Chapter 11 bankruptcy filing and restructuring process.

Sentiment

Score: 3

Explanation: The filing indicates a significant shareholder's representative resigning from the board amidst the company's Chapter 11 bankruptcy and restructuring, which are highly negative events. While the fund intends to continue engagement, the overall context is severely negative for the company's equity.

Negatives

• A significant shareholder's representative, David Mounts Gonzales, resigned from ModivCare Inc.'s Board of Directors.
• ModivCare Inc. is undergoing voluntary Chapter 11 protection in U.S. Bankruptcy Court and a restructuring process.

Risks

• ModivCare Inc. has filed for voluntary Chapter 11 protection in U.S. Bankruptcy Court.
• The company is undergoing a restructuring process, which carries inherent uncertainties and risks to existing equity holders.
• The resignation of a board member representing a significant shareholder could signal potential disagreements or challenges in the ongoing restructuring process.

Future Outlook

The Reporting Persons intend to continue engaging with ModivCare's Board regarding their investment and the company's Chapter 11 restructuring process.

Industry Context

This filing indicates ongoing shareholder engagement and potential activist involvement during a company's bankruptcy and restructuring phase, a common occurrence in distressed situations where shareholders seek to protect or maximize their investment.

Management Changes

Legal Proceedings

• ModivCare Inc. has filed for voluntary Chapter 11 protection in U.S. Bankruptcy Court.

Stakeholder Impact

• Shareholders: The company's Chapter 11 filing and restructuring process will significantly impact shareholder value. The resignation of a director representing a major shareholder could indicate a lack of confidence or strategic divergence.
• Management/Board: The board will continue to navigate the Chapter 11 process and engage with significant shareholders like AI Catalyst Fund.

Next Steps

• Reporting Persons intend to continue engaging in communications with ModivCare's Board regarding their investment and interests as stockholders.
• ModivCare Inc. will continue its Chapter 11 restructuring process.

Key Dates

Recommendation

The company is in Chapter 11 bankruptcy, which typically results in significant dilution or complete loss for existing equity holders. A major shareholder's representative resigning from the board further underscores the severe challenges and uncertainty, making the stock a strong sell for investors.

Keywords

ModivCare, AI Catalyst Fund, Schedule 13D, Board Resignation, Chapter 11, Bankruptcy, Restructuring, Shareholder Activism, Common Stock