Medical services provider CareMax files for Chapter 11 restructuring

Caremax

17/11/2024 15:29

HOUSTON, Nov 17 (Reuters) - CareMax  CMAX.O , 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
 MTSTF.UL  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. 
         

 (Reporting by Gary McWilliams
Editing by Bill Berkrot)
 ((Gary.McWilliams@thomsonreuters.com; +1 469-691-7668;))