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PSZJ Representation of Unsecured Creditors’ Committee in Chapter 11 Case of Borrego Community Health Foundation Culminates; Judge Confirms Plan for 100% Recovery to GUCs
The firm is pleased to announce that a plan has been confirmed in the chapter 11 bankruptcy of Borrego Community Health Foundation, in which PSZJ represents the official committee of unsecured creditors. The plan, confirmed on January 17, 2024, will lead to a 100% recovery to holders of allowed general unsecured claims in what was a complex case that began under difficult and uncertain circumstances.
Jeffrey Pomerantz and Steve Golden were the principal members of the PSZJ team serving the committee of unsecured creditors, alongside the committee’s financial advisors at FTI, Cliff Zucker and Narendra Ganti.
The nonprofit health center provided invaluable, culturally informed healthcare services to San Diego and Riverside County’s underserved communities. However, a dispute with the California Department of Health Care Services threatened the operation of its 21 locations in September 2022. The committee supported the sale of Borrego’s clinics, ensuring continuity of care and employment for over 100,000 Californians, alongside the debtor, represented by Dentons and Ankura.
Coverage of the bankruptcy case can be found below.
Palms Springs Desert Sun