Miami-based Cano Health, a primary care provider, is potentially looking at bankruptcy after posting "abysmal" second-quarter results, according to an Aug. 10 Seeking Alpha report.
Cano Health, which saw its shares slump to just 41 cents late last week after it said it would cut almost 20 percent of its workforce, put the company up for sale and recorded an operating loss of $245.6 million, is likely to only be able to sell up if Chapter 11 proceedings are entered, according to the commentary.
"At least in my opinion, given the complexity and dismal state of the company's operations, a sale outside of chapter 11 looks unlikely at this point," investor Henrik Alex wrote on the site.
Cano Health has been financially strapped and embroiled in shareholder battles for several months now, but the latest results took the company, which traded less than a year ago at almost $9, to a new low, according to the commentary.
"Following an abysmal second quarter and recent debt covenant violations, Cano Health appears well on its way to become the next busted SPAC deal," according to the commentary.
Becker's has reached out to Cano Health for comment and will update accordingly.