06:09 AM EST, 11/18/2024 (MT Newswires) -- CareMax ( CMAX ) said on Sunday that it had initiated Chapter 11 proceedings to facilitate asset sales under a prearranged plan supported by secured lenders.

The company said it would sell its Medicare Shared Savings Program to Revere Medical, affecting care for 80,000 beneficiaries, adding that it will wind down the ACO REACH and Medicare Advantage portions of its management services organization.

Additionally, CareMax ( CMAX ) is pursuing a "stalking horse" bid for its clinic operations with a third-party buyer, with secured lenders prepared to credit the bid if no agreement is reached.

"The company intends to disclose the proposed terms of the stalking horse agreement and the potential purchaser in the coming days, when and if an agreement is finalized," CareMax ( CMAX ) said.

It added that it has filed Chapter 11 bankruptcy in Texas court and will need a $30.5 million debtor-in-possession financing agreement to continue its operations during the process, with asset sales expected to finalize by early 2025.

Shares of the company fell more than 32% in premarket activity.