Valley Health System, a Local Health Care District in Hemet, Calif., has filed a debt adjustment plan that is supported by most of the district's creditors, according to a story in The Press-Enterprise, in Riverside, Calif.
The hospital district, which filed for Chapter 9 bankruptcy in 2007, owes bondholders about $42.5 million and unsecured creditors $21 million.
The debt adjustment plan involves the sale of the district's assets, including its two hospitals, Hemet Valley Medical Center and Menifee Valley Medical Center, to Physicians for Healthy Hospitals, a Hemet-based physician group, the Press-Enterprise said.
While most of the creditors support the plan, a U.S. Bankruptcy Court Judge is expected to hear a challenge from Prime Healthcare Services — which last month bought $4,300 of the district's debt to become a creditor — later this month.
Read the The Press-Enterprise report on Valley Health System.