Force 10 Partners Sell Watsonville Community Hospital and Its Plan Goes into Effect, Securing a Fresh Start for Long Struggling Hospital | Company
IRVINE, Calif.–(BUSINESS WIRE)–September 15, 2022–
Force 10 Partners successfully sold Watsonville Community Hospital and its plan became effective September 9, 2022, helping to secure a fresh start for the hospital as a non-profit facility under new district ownership. Pajaro Valley Health Care Center. Ownership of the hospital passed to the District on September 1, 2022, following an eight-month community fundraising campaign that raised more than $65 million, including a $25 million allocation from the State of California, for the acquisition and continued operation of the hospital.
“The Force 10 team is delighted to have successfully sold Watsonville Community Hospital and confirmed their plan. By working with other professionals and the hospital, we have saved more than 650 jobs and preserved a vital resource for Santa Cruz County,” said Force 10 Partner Jeremy Rosenthal. “We are proud that our efforts have helped to save the hospital and that we were able to guide the debtors to the effective date of their plan. We look forward to seeing how the community will build on this opportunity to provide quality health care in the future.
The hospital has been struggling financially for many years and was about to close when Rosenthal was appointed director of restructuring in September 2021. Rosenthal and the Force 10 team, led by partner Nicholas Rubin and whose chief executive Renee Albarano, were engaged to provide financial and operational support and expertise to the hospital.
Through their efforts, Rosenthal and the Force 10 team were able to stabilize the hospital’s financial and operational challenges and navigate the Chapter 11 bankruptcy process. Rosenthal successfully negotiated debtor-in-possession financing and sale to the district. that have allowed the hospital to remain open and continue to provide much-needed health care services to its underserved community throughout the Chapter 11 process.
On February 23, 2022, Judge M. Elaine Hammond of the United States Bankruptcy Court, Northern District of California, San Jose Division, (Case No. 21-51477 (MEH)), approved the sale of the hospital for $34 million. dollars plus assumed debts to the district. The plan became effective on September 9, 2022 and resolves approximately $100 million in liabilities.
“Jeremy Rosenthal, as Hospital Trustee, and Force 10’s team of financial advisors led by Nicholas Rubin made the successful sale possible. The significant resources they have brought to the hospital have meant everything in the past year: preserving the hospital and enabling the community to buy it,” said Cecilia Montalvo, Consulting Director of Pajaro Valley Healthcare District. Project.
“Jeremy Rosenthal and Force 10 have been instrumental in laying the foundation for success. Force 10 has been a key pillar in the success of this hospital,” said Mimi Hall, former County Health Services Agency Director from Santa Cruz.
“Force 10 helped us navigate our difficult restructuring and sale. They have supported us every step of the way and provided us with the financial, operational and restructuring support necessary to operate this essential hospital,” said Watsonville Community Hospital CEO Steven Salyer.
The hospital was represented by the law firm Pachulski Stang Ziehl & Jones LLP, led by attorneys Debra Grassgreen, Henry Kevane and Steven Golden. The official committee was represented by Paul Jasper of Perkins Coie LLP and Andrew Sherman and Boris Mankovetskiy of Sills Cummis & Gross PC
“Force 10 is grateful to have had the opportunity to work closely with Pachulski Stang, Perkins Coie and Sills Cummis to achieve what many thought was impossible: to preserve this historic hospital for the communities of Santa Cruz and Monterey Counties that depend on its services.” said Rosenthal. “In addition to the professionals, the hospital management team led by Steven Salyer has done an excellent job. The management team has supported the hospital and contributed to his success. “
About Force Ten Partners LLC
Force Ten Partners, LLC, is a consulting firm with extensive knowledge in the field of financial and operational corporate restructuring, fiduciary, valuation, forensic accounting and complex litigation support. Force 10 serves middle market companies and their creditors, stakeholders and professionals by providing turnaround management services, fiduciary and financial advisory services, expert witness support and investment banking services.
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CONTACT: Jeremy Rosenthal
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES HEALTH HOSPITALS LEGAL FINANCE CONSULTANCY ACCOUNTING
SOURCE: Force Ten Partners LLC
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PUBLISHED: 09/15/2022 11:00 AM / DISK: 09/15/2022 11:03 AM