To respect Medical (TASE:) entered into an agreement to acquire the management services organization of CareMax
An agreement in principle was reached with Stalling Horse for the assets of the core centers.
The sale transaction will be implemented through an expedited prearranged Chapter 11 plan backed by 100% of CareMax’s secured creditors.
CareMax secured $30.5 million in debt to support operations and continued delivery of healthcare services (NASDAQ:
MIAMI–( BUSINESS WIRE )–CareMax, Inc. (NASDAQ: CMAX; CMAXW) (CareMax or the Company), a leading technology-driven value-based care delivery system, today announced that it has entered into an agreement to sell its Also announced the sale process for the management services organization and the assets of the Company’s core centers (collectively, sale transactions). The sale transaction will be implemented pursuant to a prearranged Chapter 11 plan that will be 100 percent supported and funded by CareMax’s existing secured creditors (the prearranged plan).
CareMax has entered into an agreement with an affiliate of Revere Medical (formerly known as Rural Health Group), whereby Revere Medical will acquire a portion of the company’s Managed Services Organization (MSO Business) Medicare Shared Savings Program. Will support the care provided. About 80,000 Medicare beneficiaries. The sale of the MSO business is expected to be completed concurrently with the completion of CareMax’s pre-arranged plan. The Company plans to terminate the ACO REACH and Medicare Advantage portions of its administrative services organization.
CareMax also announced that it has reached an agreement in principle on a pursuit horse deal with a third-party buyer for the company’s operating clinic business (core centers assets). The closing of the sale is also expected to be completed concurrently with the completion of CareMax’s pre-arranged plan. The Company intends to communicate the proposed terms of the Stalking Horse Agreement and the potential buyer in the coming days, when and if any agreement is finalized.
Bids for the stalking horse will be subject to auction and, if an agreement is not reached with the horse’s bidder in the coming days, CareMax’s existing secured creditors “who have been providing capital to the business for the past four months.” “Credit will bid. For assets of primary centers. The purpose of the sale process is to ensure patient and physician continuity, and CareMax’s secured lenders are committed to supporting the business throughout the process.
To facilitate the foregoing, CareMax has commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the Northern District of Texas (the “Court”). CareMax has also filed customary motions with the court, asking for permission to conduct business as usual, including:
- continuing operations to ensure that patients in its clinics continue to receive high-quality, value-based health care;
- payment of relevant salaries, including for its doctors and nurses, without interruption; And
- Payment of certain vendor pre-petition claims that are critical to the health and safety of CareMax patients and to the operation of the Company’s medical centers.
These motions, once approved, will help facilitate a smooth transition to the restructuring process and ensure that the Company’s medical centers and physicians can continue to provide uninterrupted services to patients. .
Simultaneously, CareMax entered into a restructuring support agreement (“RSA”) with 100 creditors. Percentage of the company’s secured debt obligations. RSA provided, among other things, lender support for the sale transaction and prearranged plan and the lenders’ agreement to provide CareMax with a $30.5 million lender-in-possession financing facility. Support CareMax operations through pre-arranged plan verification. DIP financing).
The prearranged plan, sale transactions, RSA, and DIP financings are subject to court approval as well as customary regulatory approvals and closing conditions. CareMax expects the sale transaction and pre-arranged plan to be completed in early 2025.
CareMax will continue and maintain its commitment to providing high quality patient care and services. The DIP financing is expected to provide sufficient liquidity to support the company’s ongoing operations throughout the restructuring process.
After carefully evaluating the company’s strategic alternatives, we have determined that the transaction announced today is the best way to protect the long-term value of CareMax’s assets and to ensure our patients are protected, CareMax Chief Executive Officer Carlos De Solo said. have the best chance, providers, and health plans can continue to rely on the comprehensive, integrated care we provide. We deeply appreciate the outstanding team members at CareMax, whose hard work and commitment to our partners is unwavering.
Additional information about the Company’s court-supervised process, court jurisdiction, and claims process can be found at https://cases.stretto.com/CareMax, which is provided by CareMax’s claims agent, Stretto. , Inc. is a website operated by Available by calling (855.314.3709) (toll free) and (657.660.3550) (international).
Additional information regarding the prearranged plan, the sale transaction, the RSA, and the DIP financing, and the effect of the foregoing on the Company’s security holders, is available in the Current Report on Form 8-K filed with the U.S. Securities and Exchange. can be found Commission
Advisor
Sidley Austin LLP is acting as legal counsel to CareMax. Alvarez & Marsal North America, LLC is serving as financial advisor to CareMax. Piper Sandler & Co. Serving as an investment banker at CareMax. Ropes & Gray LLP is serving as legal counsel and Guggenheim Securities, LLC is serving as financial advisor and investment banker to the existing secured creditor.
About CareMax
Founded in 2011, CareMax is a value-based care delivery system using a proprietary technology-driven platform and multi-specialty, fully personalized health model to deliver comprehensive, preventive and integrated care for its members. uses CareMax operates 46 medical centers and employs approximately 1,100 employees who serve approximately 260,000 patients across all business lines. Through CareMax’s fully integrated, five-star quality-rated health and wellness centers, CareMax reduces costs, improves overall outcomes and promotes health equity for seniors across the country. Redefining Healthcare.
Learn more at www.caremax.com.
About River Medical / Rural Healthcare Group
Rural Healthcare Group is now River Medical. River Medical is headquartered in Nashville, Tennessee and operates an employee medical group and provider network in six states. More information about Revere Medical can be found at: www.reveremedical.com
Forward-Looking Statements
This press release is within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. Contains forward-looking statements. These forward-looking statements include statements regarding the process and likely outcome and timing of the Company’s Chapter 11 proceeding, the Company’s expectations regarding the prearranged plan, the sale transaction and the DIP financing and court approval, pending settlement. Includes company expectations regarding arrival. to sell the assets of the core centers, the company’s ability to continue as normal operations during the Chapter 11 proceeding and the company’s ability to pay continuing obligations. Words such as “anticipate,” “believe,” “budget,” “consider,” “continue,” “may,” “imagine,” “estimate,” “anticipate,” “guide,” “indicate do,” “intend,” “may,” “perhaps,” “plan,” “probably,” “probably,” “forecast,” “perhaps,” “pro Pharma,” “project,” “seek,” “should,” “target,” or “will” or its negative or other variations, and similar words or phrases or comparable terms are intended to identify forward-looking statements. have to do These forward-looking statements reflect the Company’s expectations, plans or predictions and views regarding future events as of the date of this press release. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the Company’s control. which may cause actual results or consequences. The forward-looking statements may differ materially from those discussed in the forward-looking statements.
Important risks and uncertainties that could cause the Company’s actual results and financial condition to differ materially from those expressed in the forward-looking statements include the Company’s future capital needs and sources and cash flows. , including funds to meet its liquidity needs. the Company’s ability to fund its planned operations and to continue as a going concern; the adverse effects of the Chapter 11 proceeding on the Company’s business, financial condition, and results of operations; the Company’s ability to maintain relationships with patients, employees, physicians, health plans and other key payors and other third parties as a result of the Chapter 11 proceeding; the effects of the Chapter 11 proceeding on the Company and the interests of various constituents, including holders of the Company’s common stock; the Company’s ability to obtain court approval in connection with motions or other requests filed with the court during the Chapter 11 proceeding; risk associated with third-party actions in Chapter 11 cases; and other risks and uncertainties described from time to time in the Company’s filings with the United States Securities and Exchange Commission (SEC). For a detailed discussion of risk factors that could affect the Company’s actual results, please refer to the Risk Factors identified in the Company’s reports filed with the SEC. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update or revise such information unless required by law, and forward-looking statements. should not be relied upon as representing the Company’s assessments as of any date. After the date of this press release.
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Investor Relations / Media
Strategy Collected by Jude Gorman / Clayton Erwin / Olivia Sherman
CareMax-CS@collectedstrategies.com
Source: CareMax, Inc.
