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Watsonville Hospital Corporation

The firm was counsel to Watsonville Hospital Corporation in its chapter 11 case commenced in December 2021 in the San Jose division of the Northern District of California. The debtor operated the Watsonville Community Hospital, a 106-bed acute care facility serving patients in the Pajaro Valley area of Santa Cruz and Monterey counties. The debtor sold the hospital to a newly created local healthcare district, formed with widespread political support, placing the hospital under public stewardship and ensuring continued access to medical care for a diverse and growing community. In July 2022, the debtor confirmed a plan of liquidation that established a trust to resolve claims and make distributions to creditors.