Medical Center Operator CareMax Files For Chapter 11 Bankruptcy: Details

On Sunday, CareMax Inc CMAX agreed to sell its management services organization and also announced a sale process for the company’s core centers’ assets.

The sale will be implemented under a prearranged Chapter 11 plan supported and funded by 100% of CareMax’s current secured lenders.

Founded in 2011, CareMax is a value-based care delivery system. CareMax operates 46 clinical centers and employs approximately 1,100 employees, serving approximately 260,000 patients across all business lines.

CareMax has agreed with an affiliate of Revere Medical (formerly known as Rural Health Group), under which Revere Medical will acquire the Medicare Shared Savings Program portion of the company’s management services organization that supports care provided to approximately 80,000 Medicare beneficiaries.

The sale of the management services organization Business is anticipated to be consummated simultaneously with the consummation of CareMax’s Prearranged Plan.

The company intends to wind down the ACO REACH and Medicare Advantage portions of its management services organization.

CareMax also announced that it reached an agreement in principle on a “stalking horse” agreement with a third-party buyer for the company’s operating clinic business, the “Core Centers’ Assets.”

The stalking horse bid will be subject to an auction and, if an agreement with the stalking horse bidder is not finalized in the coming days, CareMax’s current secured lenders – who have been providing capital to the business for the past four months – will credit bid for the Core Centers Assets.

Simultaneously, CareMax entered into a restructuring support agreement with lenders holding 100% of the company’s secured debt obligations.

The agreement provides for, among other things, the lenders’ support for the Sale Transactions and the Prearranged Plan and the lenders’ agreement to provide CareMax with a $30.5 million debtor-in-possession financing facility

Price Action: CMAX stock is down 57.7% at $0.71 at last check Monday.

Photo via Shutterstock

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