On July 7, 2025, in connection with its ongoing representation of California-based hospital Prospect Medical Holdings, Inc. (“Prospect”), a Sidley team represented certain Prospect physician-related debtor affiliates in its Chapter 11 filing in the United States Bankruptcy Court for the Northern District of Texas. As of the filing of the bankruptcy petitions, the newly filed Debtors had approximately US$772.4 million in secured debt obligations. At its first-day hearing on July 9, 2025, the Court extended certain administrative and operational relief to the new Debtors. The Chapter 11 filings follow the closing of a sale of substantially all of the newly filed Debtors’ assets to Astrana Health, Inc. for a purchase price of US$698.5 million.
At the same hearing, the Court also approved an additional US$30 million in priming DIP financing for the legacy Debtors over objection of a secured creditor.
The Sidley team representing Prospect was led by Tom Califano, Bill Curtin, and Rakhee Patel, and included Patrick Venter, Anne Wallice, Maegan Quejada, Jonathan Mitnick, Parker Embry, Veronica Courtney, Jake Landreth-Wright, Charlie Brownstein, William Cálix, Julia Jean (JJ) Citron, Chang Liu, Ben Luo, Ishani Patel, Zoe Stern, and law clerks Vivian Li and Dylan Yan (Restructuring); Kelly Lazaroff, Pietro Fontana, Ethan Konschuh, Yan Goodwin, and Madeline Moore (Global Finance); Kate Roberts and Allison C. Ivey Toth (Labor, Employment and Immigration); Vadim Brusser and Mary Marks (Antitrust and Competition); Mary Niehaus and Steven Szymanski (Employee Benefits and Executive Compensation); Ashley Moulder, Jack Messer, and Grace Binger (Corporate); John Skakun (Securities and Shareholder Litigation); Jon Muenz, Sam Gorsche, Maseeh Moradi, and Gregory Jacobs (Commercial Litigation and Disputes); and Jon Zucker and George Maliha (Healthcare).