HOUSTON (Reuters) – CareMax, which operates 56 medical centers serving mostly elderly patients in Florida, Texas, Tennessee and New York, filed for Chapter 11 bankruptcy protection in Texas on Sunday.
The Miami-based company has $693 million in debt and $390 million in assets, according to filings with the U.S. Bankruptcy Court for the Northern District of Texas.
In August, CareMax posted a $170.6 million loss in the second quarter and issued a going concern warning. The company announced earlier this month that it would be unable to file its third-quarter report with the U.S. Securities and Exchange Commission due to a lack of funding.
The company said it plans to proceed with the sale or other transaction of its managed services organization and core center assets.
The board approved the hiring of Alvarez & Marsal as financial advisors and Piper Sandler as investment banker, according to the filing.
The move follows bankruptcies this year of other medical groups, including Massachusetts-based Steward Healthcare. steward filed for bankruptcy In May, it plans to sell all 31 hospitals to deal with $9 billion in debt.
CareMax acquired Steward's value-based Medicare business in late 2022 for $25 million in cash and 23.5 million shares of its own stock. CareMax stock closed at $1.68 on Friday, down 89% since the beginning of the year.
