HOUSTON – CareMax (NASDAQ: CMAX), 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 won’t be able to file its third-quarter report with the U.S. Securities and Exchange Commission due to a lack of funds.
The company plans to pursue a sale or other transactions for its management services organization and its core center 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.
In late 2022, CareMax (NASDAQ: CMAX) acquired the Medicare value-based business of Steward for $25 million in cash and 23.5 million shares of its stock. CareMax shares plunged 28.57% to $1.20 in premarket trading. The stock is down 89% year to date.
