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Contact Info

Malhar Pagay
10111 Santa Monica Blvd. 13th Floor
Los Angeles CA 90067

Pacifica Hospital of the Valley

This site has been created to provide unsecured creditors with information and to solicit and receive comments from unsecured creditors about the pending chapter 11 bankruptcy case of Pacifica Hospital of the Valley.

On February 17, 2009, Pacifica of the Valley Corporation, dba Pacifica Hospital of the Valley ("Pacifica Hospital"), commenced chapter 11 case number 09-11678 in the United States Bankruptcy Court for the Central District of California in Woodland, California ("Bankruptcy Court").  The Honorable Muareen Tighe is the presiding judge.  

Committee Appointment

On February 27, 2009, the United States Trustee appointed the committee of creditors holding unsecured claims in the case ("Committee").  Members were Walden Medical Group; Serra Community Medical Clinic; Medline Industries; Special Respiratory Care; and Bruce W. Kovacs, MD. 

Confirmation of Plan of Reorganization

On December 27, 2010, the Bankruptcy Court confirmed Pacifica Hospital’s Second Amended Chapter 11 Plan of Reorganization (the “Plan”). The Plan became effective on January 14, 2011 (the “Effective Date”).  Since the Effective Date, Pacifica Hospital has continued to operate. 

Class 6 Creditor Trust

Upon the Effective Date, the Committee dissolved and, since that time, the interests of general unsecured creditors have been represented by the Class 6 Creditor Trust (the “Trust”). The Trust is governed by the Post-Effective Date Committee, which consists of Medline Industries, Bruce W. Kovacs, M.D., Walden Medical Group and Special Respiratory Care, Inc. The trustee of the Trust is David K. Gottlieb ("Creditor Trustee"). 

Payments to Unsecured Creditors

Due to Pacifica Hospital’s failure to cure its payment defaults under the Plan, on December 31, 2015, the Creditor Trustee filed his Motion of Class 6 Creditor Trust for Order Enforcing Terms of Confirmed Plan [Docket No. 883] (the “Plan Enforcement Motion”), seeking an order of the Bankruptcy Court requiring the hospital to (a) pay to the Creditor Trustee (i) all outstanding interim distributions made directly to creditors (arising, e.g., from checks not issued, sent or deposited, or returned checks), estimated at the time of filing of the motion to be in the aggregate amount of $2,168,455.55, as well as (ii) an additional amount owed of $1,203,259.71 on account of remaining amounts due under the General Unsecured Promissory Note payable by Pacifica Hospital to the Class 6 Creditor Trust under the terms of the Plan; and (b) provide to the Creditor Trustee with information on a monthly basis regarding the clearance of checks previously allegedly issued directly by the hospital to unsecured creditors.

Pacifica Hospital did not oppose the Plan Enforcement Motion. Pacifica Hospital and the Creditor Trustee engaged in good-faith discussions regarding the hospital’s satisfaction of the requirements set forth in the Plan Enforcement Motion and agreed to the terms of an order granting the motion. The Bankruptcy Court entered the Agreed Order (A) Granting Motion of Class 6 Creditor Trust for Order Enforcing Terms of Confirmed Plan; and (B) Setting Further Hearing Re:  Compliance with Order [Docket No. 889] (the “Agreed Order”) on January 26, 2016, which required the hospital to pay the Class 6 Creditor Trust:  

(a) $1,900,000 on or before January 27, 2016; and (b) the remaining balance of the Final Distribution Amount (currently calculated by the Trustee to be $1,471,715.26, but subject to a final good faith reconciliation between the Reorganized Debtor and the Trustee) on or before the earliest to occur of (i) the first (1st) business day following the Reorganized Debtor’s receipt of its next Disproportionate Share Hospital (DSH) payment (currently scheduled to be paid by the State of California on or about February 29, 2016); (ii) the first (1st) business day after the Reorganized Debtor’s receipt of its next Quality Assurance Fee (QAF) payment (currently scheduled to be paid by the State of California on or about March 21, 2016); and (iii) March 31, 2016.

As of March 1, 2016, the Creditor Trustee has received $1,900,000.00 and $1,259,082.36 (the reconciled Final Distribution Amount after crediting cleared checks and adding interest) pursuant to the terms of the Agreed Order. The Creditor Trustee currently is determining the amount of distributions unclaimed by creditors holding allowed claims, which amount will be distributed on a pro rata basis to other holders of allowed general unsecured claims, as required by the Plan.  Thereafter, the Creditor Trustee will calculate the amounts of final distributions to be made to unsecured creditors and issue such payments.

For More Information 

Please contact Malhar Pagay with any questions, comments, or requests regarding the Pacifica Hospital bankruptcy case (click on name to email or telephone at 310.277.6910).  For information on how to gain access to all documents filed in this case (in addition to the selected documents available on this page), please click on the “Register as a PACER User” link.