CareMax Inc. Files for Chapter 11 Bankruptcy, Plans Asset Sale

CareMax Inc., a significant provider of medical services through its clinical care centers, has filed for Chapter 11 bankruptcy protection in a Texas bankruptcy court. The company, listed on the Nasdaq under the ticker symbol CMAX, cited $422.6 million in funded debt as part of its filing.

As part of its bankruptcy plan, CareMax intends to sell a portion of its Medical Service Organization (MSO) business and certain assets of its Core Centers. The sale is set to be made to Revere Medical, a company backed by the private equity firm Kinderhook.

A Texas bankruptcy judge has approved CareMax’s request to access $122 million in Chapter 11 financing, which will be used to support the company’s operations and sale efforts during the bankruptcy process.

This move is part of a broader trend where several major healthcare providers are facing financial difficulties and opting for bankruptcy protection. The healthcare sector has been under significant stress due to various economic and operational challenges.