The hospital was plagued by ongoing losses putting access to local care in jeopardy. Hospital district was formed to purchase the facility and effectuate the reorganization.
Watsonville Hospital Corporation filed Chapter 11 bankruptcy due to poor management and liquidity issues. Force 10 was hired as the financial advisor to assist with the restructuring of the debtors as well as to facilitate the sale of the hospital. The hospital has been struggling financially for years and was on the verge of shutting down when a Force 10 partner was appointed Chief Restructuring Officer in September 2021. Force 10 also provided the hospital with financial and operational support and expertise. Through our efforts, we stabilized the hospital’s financial and operational challenges. We led the Chapter 11 bankruptcy process, including successfully negotiating the Debtor in Possession financing and the sale to a newly formed healthcare district. Our efforts thus far have enabled the hospital to remain open and continue providing much-needed healthcare services to its underserved community throughout the Chapter 11 reorganization.