Revere Medical (TASE:) Enters into Settlement to Purchase CareMax’s Administration Companies Group
Settlement in Precept Reached with Stalking Horse for Core Facilities’ Property
Sale Transactions to be Carried out Via an Expedited Prearranged Chapter 11 Plan Supported by 100% of CareMax’s Secured Lenders
CareMax Secures $30.5 Million in Debtor in Possession Financing to Assist Operations and Persevering with Provision of Healthcare Companies (NASDAQ:) All through Restructuring Course of
MIAMI–(BUSINESS WIRE)–CareMax, Inc. (NASDAQ: CMAX; CMAXW) (CareMax or the Firm), a number one technology-enabled value-based care supply system, at the moment introduced it has entered into an settlement to promote its administration providers group and in addition introduced a sale course of for the Firm’s core facilities’ property (collectively, the Sale Transactions). The Sale Transactions will likely be applied pursuant to a prearranged chapter 11 plan supported and funded by one hundred pc of CareMax’s present secured lenders (the Prearranged Plan).
CareMax has entered into an settlement with an affiliate of Revere Medical (previously referred to as Rural Well being Group), pursuant to which Revere Medical will purchase the Medicare Shared Financial savings Program portion of the Firm’s administration providers group (the MSO Enterprise) that helps care offered to roughly 80,000 Medicare beneficiaries. The sale of the MSO Enterprise is anticipated to be consummated concurrently with the consummation of CareMax’s Prearranged Plan. The Firm intends to wind down the ACO REACH and Medicare Benefit parts of its administration providers group.
CareMax additionally introduced that it has reached an settlement in precept on a stalking horse settlement with a third-party purchaser for the Firm’s working clinic enterprise (the Core Facilities’ Property). The closing of this sale can be anticipated to be consummated concurrently with the consummation of CareMax’s Prearranged Plan. The Firm intends to reveal the proposed phrases of the stalking horse settlement and the potential purchaser within the coming days, when and if an settlement is finalized.
The stalking horse bid will likely be topic to an public sale and, if an settlement with the stalking horse bidder just isn’t finalized within the coming days, CareMax’s present secured lenders “ who’ve been offering capital to the enterprise for the previous 4 months “ will credit score bid for the Core Facilities Property. The sale course of is meant to make sure affected person and physician continuity and CareMax’s secured lenders are dedicated to supporting the enterprise all through this course of.
To facilitate the foregoing, CareMax has initiated prearranged voluntary chapter 11 proceedings within the U.S. Chapter Courtroom for the Northern District of Texas (the “Court”). CareMax has additionally filed customary motions with the Courtroom, in search of authorization to keep up business-as-usual operations, together with by:
- Persevering with operations to make sure sufferers at its clinics proceed to obtain high-quality, value-based healthcare;
- Paying related wages, together with for its docs and nurses, with out interruption; and
- Paying the present pre-petition claims of sure distributors which are important to the well being and security of CareMax’s sufferers and demanding to the operation of the Firm’s medical facilities.
These motions, as soon as accepted, will assist facilitate a clean transition into the restructuring course of and make sure the Firm’s medical facilities and physicians can proceed offering uninterrupted service to sufferers.
Concurrently, CareMax entered right into a restructuring help settlement (the “RSA”) with lenders holding 100 p.c of the Firm’s secured debt obligations. The RSA offers for, amongst different issues, the lenders’ help for the Sale Transactions and the Prearranged Plan and the lenders’ settlement to offer CareMax with a $30.5 million debtor in possession financing facility to help CareMax’s operations by affirmation of the Prearranged Plan (the DIP Financing).
The Prearranged Plan, the Sale Transactions, the RSA, and the DIP Financing are topic to Courtroom approval, in addition to customary regulatory approval and shutting circumstances. CareMax anticipates that the Sale Transactions and Prearranged Plan will likely be consummated in early 2025.
CareMax will proceed to function and preserve its dedication to offering high-quality affected person care and providers. The DIP Financing is anticipated to offer ample liquidity to help the Firm’s ongoing operations all through the restructuring course of.
Carlos de Solo, Chief Government Officer of CareMax, commented, After a cautious assessment of the Firm’s strategic options, we now have decided that the transactions introduced at the moment are our greatest alternative to guard the long-term worth of the CareMax property and guarantee our sufferers, suppliers, and well being plans can proceed to depend on the great, coordinated care we offer. We’re deeply appreciative of the excellent group members throughout CareMax, whose arduous work and dedication to our companions is resolute.
Extra info concerning the Firm’s court-supervised course of, courtroom filings, and details about the claims course of could be discovered at https://circumstances.stretto.com/CareMax, an internet site administered by CareMax’s claims agent, Stretto, Inc. Info can be obtainable by calling (855.314.3709) (Toll-Free) and (657.660.3550) (Worldwide).
Extra info concerning the Prearranged Plan, Sale Transactions, the RSA, and the DIP Financing, and the impression of the foregoing on the Firm’s securityholders, could be present in a Present Report on Kind 8-Ok to be filed with the U.S. Securities and Alternate Fee.
Advisors
Sidley Austin LLP is serving as authorized counsel to CareMax. Alvarez & Marsal North America, LLC is serving as monetary advisor to CareMax. Piper Sandler & Co. is serving as funding banker to CareMax. Ropes & Grey LLP is serving as authorized counsel and Guggenheim Securities, LLC is serving as monetary advisor and funding banker to the present secured lenders.
About CareMax
Based in 2011, CareMax is a value-based care supply system that makes use of a proprietary technology-enabled platform and multi-specialty, complete individual well being mannequin to ship complete, preventative and coordinated take care of its members. CareMax operates 46 scientific facilities and employs roughly 1,100 workers who serve roughly 260,000 sufferers throughout all enterprise strains. Via CareMax’s fully-integrated, 5-Star High quality rated well being and wellness facilities, CareMax is redefining healthcare throughout the nation by lowering prices, bettering total outcomes and selling well being fairness for seniors.
Study extra at www.caremax.com.
About Revere Medical / Rural Healthcare Group
Rural Healthcare Group is now Revere Medical. Revere Medical is headquartered in Nashville, Tennessee and operates an employed medical group and supplier community throughout six states. Extra info on Revere Medical could be discovered right here: www.reveremedical.com
Ahead-Wanting Statements
This press launch accommodates forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933, as amended, Part 21E of the Securities Alternate Act of 1934, as amended, and the Personal Securities Litigation Reform Act of 1995, as amended. These forward-looking statements embrace statements concerning the method and potential outcomes and timing of the Firm’s chapter 11 proceedings, the Firm’s expectations concerning the Prearranged Plan, the Sale Transactions and the DIP Financing and the Courtroom’s approval thereof, the Firm’s expectations concerning reaching an settlement to promote the Core Facilities’ Property, the Firm’s capability to proceed to function as common through the chapter 11 proceedings and the Firm’s capability to pay for persevering with obligations. Phrases comparable to “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 detrimental or different variations thereof, and comparable phrases or phrases or comparable terminology, are supposed to establish forward-looking statements. These forward-looking statements replicate the Firm’s expectations, plans or forecasts of future occasions and views as of the date of this press launch. These forward-looking statements are usually not ensures of future efficiency, circumstances or outcomes, and contain quite a lot of identified and unknown dangers, uncertainties, assumptions and different necessary components, a lot of that are exterior the Firm’s management, that would trigger precise outcomes or outcomes to vary materially from these mentioned within the forward-looking statements.
Vital dangers and uncertainties that would trigger the Firm’s precise outcomes and monetary situation to vary materially from these indicated in forward-looking statements embrace, amongst others, the Firm’s future capital necessities and sources and makes use of of money, together with funds to fulfill its liquidity wants; the Firm’s capability to fund its deliberate operations and its capability to proceed as a going concern; the hostile impression of the chapter 11 proceedings on the Firm’s enterprise, monetary situation, and outcomes of operations; the Firm’s capability to keep up relationships with sufferers, workers, docs, well being plans and different key payers and different third events on account of the chapter 11 proceedings; the results of the chapter 11 proceedings on the Firm and the pursuits of varied constituents, together with holders of the Firm’s widespread inventory; the Firm’s capability to acquire courtroom approvals with respect to motions filed or different requests made to the Courtroom all through the course of the chapter 11 proceedings; threat related to third-party motions within the chapter 11 circumstances; and the opposite dangers and uncertainties described every so often within the Firm’s filings with america Securities and Alternate Fee (the SEC). For an in depth dialogue of the chance components that would have an effect on the Firm’s precise outcomes, please seek advice from the chance components recognized within the Firm’s studies filed with the SEC. All info offered on this press launch is as of the date hereof, and the Firm undertakes no obligation to replace or revise this info except required by regulation, and forward-looking statements shouldn’t be relied upon as representing the Firm’s assessments as of any date subsequent to the date of this press launch.
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Investor Relations / Media
Jude Gorman / Clayton Erwin / Olivia Sherman Collected Methods
CareMax-CS@collectedstrategies.com
Supply: CareMax, Inc.
