CareMax Enters Into Agreement to Sell Core Centers’ Assets
CareMax (NASDAQ: CMAX) has entered into a 'stalking horse' purchase agreement with ClareMedica Health Partners for the acquisition of CareMax's core centers' assets, including most of its operating clinics. The transaction will be implemented through a prearranged Chapter 11 plan, supported and funded by all of CareMax's secured lenders. The company has received Court approval to maintain normal operations, ensuring uninterrupted patient care while the sale process proceeds. The sale is expected to be completed simultaneously with CareMax's prearranged plan.
CareMax (NASDAQ: CMAX) ha firmato un accordo di acquisto 'stalking horse' con ClareMedica Health Partners per l'acquisizione degli asset dei centri principali di CareMax, inclusi la maggior parte delle sue cliniche operative. La transazione sarà attuata tramite un piano preordinato di Chapter 11, supportato e finanziato da tutti i creditori garantiti di CareMax. L'azienda ha ricevuto l'approvazione della Corte per mantenere le operazioni normali, garantendo un'assistenza ai pazienti ininterrotta mentre il processo di vendita procede. Si prevede che la vendita venga completata simultaneamente con il piano preordinato di CareMax.
CareMax (NASDAQ: CMAX) ha entrado en un acuerdo de compra 'stalking horse' con ClareMedica Health Partners para la adquisición de los activos de los centros principales de CareMax, incluyendo la mayoría de sus clínicas operativas. La transacción se llevará a cabo a través de un plan de Capítulo 11 preestablecido, respaldado y financiado por todos los acreedores garantizados de CareMax. La compañía ha recibido la aprobación del Tribunal para mantener sus operaciones normales, asegurando una atención al paciente ininterrumpida mientras avanza el proceso de venta. Se espera que la venta se complete simultáneamente con el plan preestablecido de CareMax.
CareMax (NASDAQ: CMAX)는 ClareMedica Health Partners와 '스톡킹 호스' 구매 계약을 체결하여 CareMax의 핵심 센터 자산, 즉 대부분의 운영 클리닉을 인수하기로 했습니다. 이 거래는 모든 CareMax의 담보 대출자가 지원하고 자금을 제공하는 사전 정리된 11장 계획을 통해 시행될 것입니다. 회사는 판매 과정이 진행되는 동안 환자 치료가 중단되지 않도록 정상적인 운영을 유지할 수 있는 법원 승인을 받았습니다. 이 판매는 CareMax의 사전 정리된 계획과 동시에 완료될 것으로 예상됩니다.
CareMax (NASDAQ: CMAX) a conclu un accord d'achat 'stalking horse' avec ClareMedica Health Partners pour l'acquisition des actifs des centres principaux de CareMax, y compris la plupart de ses cliniques opérationnelles. La transaction sera mise en œuvre par un plan de chapitre 11 préétabli, soutenu et financé par l'ensemble des créanciers sécurisés de CareMax. L'entreprise a reçu l'approbation du tribunal pour maintenir ses opérations normales, garantissant ainsi des soins aux patients ininterrompus pendant que le processus de vente progresse. La vente devrait être finalisée simultanément avec le plan préétabli de CareMax.
CareMax (NASDAQ: CMAX) hat eine 'Stalking-horse'-Kaufvereinbarung mit ClareMedica Health Partners über den Erwerb von CareMax' Kernzentren, einschließlich der meisten seiner Betriebskliniken, unterzeichnet. Die Transaktion erfolgt im Rahmen eines vorab arrangierten Chapter-11-Plans, der von allen gesicherten Gläubigern von CareMax unterstützt und finanziert wird. Das Unternehmen hat die Genehmigung des Gerichts erhalten, um den normalen Betrieb aufrechtzuerhalten und die ununterbrochene Patientenversorgung während des Verkaufsprozesses zu gewährleisten. Der Verkauf wird voraussichtlich gleichzeitig mit dem vorab vereinbarten Plan von CareMax abgeschlossen.
- Court approval received to maintain business operations
- 100% secured lender support for the restructuring plan
- Continuity of patient care services assured during transition
- Company entering Chapter 11 bankruptcy proceedings
- Selling majority of operating clinics indicating financial distress
- Potential impact on shareholder value due to restructuring
Insights
This stalking horse agreement represents a significant development in CareMax's bankruptcy proceedings. The deal with ClareMedica as the initial bidder sets a floor price for CareMax's core centers, ensuring a minimum value in the bankruptcy auction process. This structure, supported by 100% of secured lenders, suggests a well-coordinated restructuring effort to maximize asset value.
The Chapter 11 filing with a pre-arranged plan indicates a controlled restructuring rather than a chaotic bankruptcy. The unanimous secured lender support is particularly noteworthy, as it typically accelerates the restructuring process and increases the likelihood of successful emergence. However, stakeholders should note that this stalking horse bid could face competing offers during the bankruptcy auction process.
For shareholders, this development likely means significant dilution or complete loss of equity value, as Chapter 11 restructurings typically result in existing equity being wiped out in favor of creditor claims.
ClareMedica Health Partners to become “Stalking Horse” Bidder to Acquire CareMax’s Core Centers’ Assets
The transaction will be implemented pursuant to a previously announced prearranged chapter 11 plan supported and funded by 100 percent of CareMax’s current secured lenders (the “Prearranged Plan”). The sale of the Core Centers’ Assets is anticipated to be consummated simultaneously with CareMax’s Prearranged Plan.
CareMax has obtained Court approval to maintain business-as-usual operations to ensure the Company’s medical centers and physician affiliates continue providing uninterrupted, high-quality care and service to all patients.
Court filings and additional information relating to CareMax’s court-supervised process can be found at https://cases.stretto.com/CareMax, a website administered by CareMax’s claims agent, Stretto, Inc. Information is also available by calling (855.314.3709) (Toll-Free) and (657.660.3550) (International).
Advisors
Sidley Austin LLP is serving as legal counsel to CareMax. Alvarez & Marsal North America, LLC is serving as financial advisor. Piper Sandler & Co. is serving as investment banker.
McGuireWoods LLP is serving as legal counsel and Ernst & Young LLP is serving as financial advisor to ClareMedica. Raymond James & Associates, Inc. is serving as investment banker to ClareMedica and its affiliates.
About CareMax
Founded in 2011, CareMax is a value-based care delivery system that utilizes a proprietary technology-enabled platform and multi-specialty, whole person health model to deliver comprehensive, preventative and coordinated care for its members. CareMax operates 46 clinical 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 is redefining healthcare across the country by reducing costs, improving overall outcomes and promoting health equity for seniors.
Learn more at www.caremax.com.
About Claremedica
Claremedica is a
Forward-Looking Statements
This press release contains forward-looking statements 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. These forward-looking statements include statements regarding the process and potential outcomes and timing of the Company’s chapter 11 proceedings, the Company’s expectations regarding the Prearranged Plan and the Court’s approval thereof, the Company’s expectations regarding the sale of Core Centers’ Assets, the Company’s ability to continue to operate as usual during the chapter 11 proceedings and the Company's ability to pay for continuing obligations. Words such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potential," "predict," "probably," "pro forma," "project," "seek," "should," "target," or "will," or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views 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 outside the Company’s control, that could cause actual results or outcomes to 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 indicated in forward-looking statements include, among others, the Company's future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs; the Company's ability to fund its planned operations and its ability to continue as a going concern; the adverse impact of the chapter 11 proceedings on the Company's business, financial condition, and results of operations; the Company's ability to maintain relationships with patients, employees, doctors, health plans and other key payers and other third parties as a result of the chapter 11 proceedings; the effects of the chapter 11 proceedings on the Company and the interests of various constituents, including holders of the Company's common stock; the Company's ability to obtain court approvals with respect to motions filed or other requests made to the Court throughout the course of the chapter 11 proceedings; risk associated with third-party motions in the chapter 11 cases; and the other risks and uncertainties described from time to time in the Company's filings with the United States Securities and Exchange Commission (the “SEC”). For a detailed discussion of the 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 duty to update or revise this information unless required by law, and forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241124982656/en/
Investor Relations / Media
Jude Gorman / Clayton Erwin / Olivia Sherman Collected Strategies
CareMax-CS@collectedstrategies.com
Source: CareMax, Inc.
FAQ
What assets is CareMax (CMAX) selling to ClareMedica?
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