06:43 AM EST, 11/18/2024 (MT Newswires) -- CareMax ( CMAX ) agreed to sell certain of its assets as part of the healthcare provider's prearranged bankruptcy protection plan.

The company filed voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Northern District of Texas, it said in a Sunday statement.

The firm agreed to sell the Medicare shared savings program portion of its management services organization to an affiliate of Revere Medical and wind down the accountable care organization realizing equity, access and community health and Medicare advantage segments.

The company is also seeking a "stalking horse" bid for its operating clinic business with an unnamed third-party buyer. The bid is subject to an auction and CareMax's ( CMAX ) secured lenders will credit bid for the business if no agreement is reached in the coming days.

The bankruptcy plan is supported and funded by 100% of CareMax's ( CMAX ) secured lenders. CareMax ( CMAX ) also filed customary motions with the court, seeking authorization to maintain business-as-usual operations.

"After a careful review of the company's strategic alternatives, we have determined that the transactions announced today are our best opportunity to protect the long-term value of the CareMax ( CMAX ) assets," Chief Executive Carlos de Solo said in the statement. The company's shares fell 28% in Monday's premarket activity.

Last week, the company said in a filing with the Securities and Exchange Commission that it won't be able to file its Form 10-Q for the quarter ended Sept. 30 on time.

CareMax ( CMAX ) also secured a $30.5 million in debtor in possession financing facility from its lenders to provide enough liquidity to the company to support its operations throughout the restructuring process. The bankruptcy plan and sales of the Medicare shared savings program and operating clinic business are expected to be completed early next year, the company said.