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Praesum Healthcare Files for Bankruptcy and Completes Court-Approved Asset Sale
Praesum Healthcare Services, LLC, a Florida-based operator of behavioral health and addiction treatment facilities, has completed the sale of substantially all of its assets following a Chapter 11 bankruptcy filing in the Southern District of Florida. The transaction, approved under Section 363 of the U.S. Bankruptcy Code, marks a significant restructuring event within the behavioral health treatment sector.
The company initially filed for bankruptcy protection on August 13, 2025. The filing included Praesum and several affiliated entities operating across multiple states. The case has proceeded under the oversight of the U.S. Bankruptcy Court for the Southern District of Florida.
Chapter 11 Filing and Financial Distress
Court records and industry reporting indicate that Praesum’s financial distress was tied in part to alleged covenant breaches under a multi-million-dollar credit facility. Litigation involving City National Bank of Florida preceded the bankruptcy filing, with claims related to compliance with financial performance thresholds and loan agreement terms.¹
The Chapter 11 filing enabled Praesum to continue operating while pursuing restructuring alternatives, including the potential sale of assets. Bankruptcy proceedings included motions related to cash collateral, debtor-in-possession financing, and creditor examinations.²
As is typical in healthcare bankruptcies, maintaining operational continuity during the case was critical to preserving enterprise value and ensuring uninterrupted patient care across treatment facilities.
Section 363 Auction and Sale Approval
In January 2026, Praesum initiated a court-approved auction process to sell substantially all of its assets pursuant to Section 363 of the Bankruptcy Code. Public notice of the proposed bidding procedures outlined the scope of assets, including enterprise operations and certain accounts receivable.³
The auction was conducted on January 16, 2026. According to industry reporting, a buyer group identified in bankruptcy filings as the Mayfair Group submitted the winning bid. The court subsequently approved the transaction at a purchase price of approximately $18.5 million.¹
The sale included nearly all operating assets, though it excluded specific categories such as cash on hand, certain litigation claims, and potential insurance recoveries. The court order required closing within a defined timeframe following approval.
Section 363 sales allow debtors to transfer assets free and clear of certain liens and liabilities, subject to court authorization. In healthcare transactions, this mechanism is often used to preserve going-concern value while resolving legacy debt obligations.
Ongoing Bankruptcy Proceedings
Although the asset sale represents a central milestone in Praesum’s restructuring, the Chapter 11 case remains active. A confirmed plan of reorganization has not yet been finalized detailing the distribution of sale proceeds to secured and unsecured creditors.¹
Court dockets show continued creditor activity, including examinations and motion practice related to claims and estate administration.² The final financial outcome for creditors will depend on the confirmed reorganization plan and court approval of distributions.
Healthcare bankruptcies frequently involve extended timelines for claims resolution due to the complexity of payer contracts, reimbursement adjustments, and contingent liabilities. Praesum’s case appears consistent with that pattern.
Broader Industry Context
Praesum’s bankruptcy and asset sale occur amid continued financial pressure within segments of the behavioral health and addiction treatment industry. Rising operating costs, staffing shortages, reimbursement variability, and debt service obligations have challenged several mid-market operators in recent years.
The use of Chapter 11 proceedings and Section 363 sales has become a recurring restructuring pathway for distressed behavioral health providers seeking to transition ownership while maintaining service continuity. The outcome of Praesum’s case will be closely monitored by investors, lenders, and operators evaluating risk exposure within the sector.
Further developments are expected as the Southern District of Florida bankruptcy court reviews plan confirmation materials and creditor claims.
References
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Behavioral Health Business. Group Pays $18.5M for Praesum Healthcare in Bankruptcy Auction. February 20, 2026. https://bhbusiness.com/2026/02/20/group-pays-18-5m-for-praesum-healthcare-in-bankruptcy-auction/
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U.S. Bankruptcy Court, Southern District of Florida. In re: Praesum Healthcare Services, LLC, Case No. 25-19335-EPK. Filed August 13, 2025. https://www.inforuptcy.com/browse-filings/florida-southern-bankruptcy-court/9%3A25-bk-19335/bankruptcy-case-praesum-healthcare-services-llc
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DailyDAC. Public Notice of 363 Sale: Praesum Healthcare Services, LLC. January 10, 2026. https://www.dailydac.com/public-notice-of-363-sale-praesum-healthcare-services-llc/