Oroville (Calif.) Hospital reached an agreement July 27 with OroHealth Corp., its debtor-in-possession lender and master trustee, to amend its DIP loan documents and extend the hospital’s post-petition financing, according to a July 27 news release.
The hospital sought Chapter 11 protection in December 2025.
The amendment, which requires the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division’s approval, would extend the hospital’s Chapter 11 timelines and milestones as it aims to restructure operations or sell the facility.
In mid-July, an ombudsman report revealed that Oroville Hospital has not “materially impaired patient care,” but a creditor or bondholder action to push it to close or seize liquidation would be detrimental to patient care.
“Today’s agreement represents a new, more collaborative step in the bankruptcy process, with these key stakeholders willing to keep working together to help continue Oroville Hospital’s long-term future as a vital healthcare provider and employer in our community,” the hospital said in the release. “Upon court approval, the Chapter 11 timelines and milestones will be extended to ensure the hospital’s continued operations while we work to complete a restructuring or sale.”
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