(Bloomberg) — A California hospital about 70 miles north of Sacramento filed for Chapter 11 chapter Monday after failing to promote itself or safe an affiliation with a bigger hospital system.
The nonprofit Oroville Hospital has been struggling to pay $193 million of excellent municipal debt used to finance a brand new tower. The development of the ability was accomplished in March however its opening was delayed because the hospital awaits state approvals, based on an area information report.
“We imagine this submitting is a crucial step towards securing the hospital’s long-term future as a significant healthcare supplier and employer in our group,” the hospital mentioned in a press release. “The aim of the submitting is to facilitate a court-supervised transaction with a accomplice that has the assets and working expertise to put money into the hospital and preserve its mission for the advantage of all our stakeholders.”
Oroville Hospital issued about $196 million of municipal debt in 2019 to develop the 133-bed facility to 211 beds. Oroville Hospital bonds final traded at 74 cents on the greenback on Nov. 17.
Working since 1962, the hospital mentioned its amenities will stay open throughout the chapter course of. Oroville Hospital additionally operates 31 clinics in Butte County.
The hospital has retained Cain Brothers, a health-care funding banking agency and KeyBanc Capital Markets division, to advise it on choosing an affiliation accomplice. FTI Consulting is serving as monetary adviser.
The case is Oroville Hospital, quantity 25-26876, within the US Chapter Court docket within the Japanese District of California.
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