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Sunday, November 17, 2024

Medical services provider CareMax files for Chapter 11 restructuring

 CareMax, which operates 56 medical centers in Florida, Texas, Tennessee and New York catering largely to older patients, filed for Chapter 11 bankruptcy in Texas on Sunday.

The Miami-based firm listed debts of $693 million and assets of $390 million, according to a filing with U.S. Bankruptcy Court for the Northern District of Texas.


In August, CareMax posted a second-quarter loss of $170.6 million and issued a going-concern warning. This month it disclosed it would not be able to file its third-quarter report with the U.S. Securities and Exchange Commission due to a lack of funds.

The company said it plans to pursue a sale or other transactions for its management services organization and its core centers assets. Directors have approved the hiring of Alvarez & Marsal as financial advisers and Piper Sandler as investment banker, the filing said.

The move follows bankruptcies by other healthcare groups this year including Massachusetts-based Steward Health Care. Steward filed for bankruptcy in May, seeking to sell all of its 31 hospitals and address $9 billion in debt.

CareMax in late 2022 had acquired the Medicare value-based business of Steward for $25 million in cash and 23.5 million shares of its stock. CareMax shares closed at $1.68 on Friday, down 89% year to date.


https://uk.finance.yahoo.com/news/medical-services-provider-caremax-files-153032490.html

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