Force Ten Partners helps secure bankruptcy court approval for sale of Watsonville Community Hospital and positions long-struggling hospital for financial and operational turnaround
IRVINE, Calif.–(BUSINESS WIRE)–Force Ten Partners LLC (Force 10) today announced that it helped secure bankruptcy court approval for the sale of Watsonville Community Hospital to the Pajaro Valley Healthcare District Project (PVHDP) and position the hospital for financial and operational recovery.
The hospital has been struggling financially for years and was on the verge of closing when Force 10 partner Jeremy Rosenthal was appointed director of restructuring in September 2021. Rosenthal and the Force 10 team, led by his partner Nicholas Rubin, were engaged to provide financial services and operational support and expertise to the hospital.
Through their efforts, Rosenthal and the Force 10 team were able to stabilize the hospital’s financial and operational challenges and lead the Chapter 11 bankruptcy process. Rosenthal successfully negotiated the debtor-in-possession financing and sale to PVHDP that have allowed the hospital to remain open and continue to provide much-needed health services to its underserved community throughout the Chapter 11 reorganization.
On February 23, 2022, Judge M. Elaine Hammond of the United States Bankruptcy Court, Northern District of California, San Jose Division, (Case No. 21-51477 (MEH)), approved the sale of the hospital for $34 million. dollars plus assumed responsibility for a newly formed health care district that was formed to succeed the PVHDP.
“I am pleased that the Court has approved the sale of the hospital to the Health District, ensuring its continued operation as an essential provider of medical services to its community. This was made possible through the support of the state and local government, as well as the regional medical and business community. I applaud the dedicated efforts of the Force 10 team led by Jeremy Rosenthal, who provided critical support to the hospital in achieving this outcome,” said David Gordon, Independent Director of the Hospital Board.
âForce 10 has effectively balanced industry expertise with on-the-ground management information to begin the hard work of stabilizing the hospital for the benefit of the future health care district and residents of the Pajaro Valley. Jeremy Rosenthal and his team worked closely with the PVHDP team. The quality of their work and collaborative approach has given the hospital a promising new start and a solid foundation for the hospital’s sustainable sustainability,â said Mimi Hall, former Santa Cruz County Health Officer and President. of the PVHDP.
The hospital is also advised by the law firm Pachulski Stang Ziehl & Jones LLP, led by attorneys Debra Grassgreen, Maxim Litvak and Steven Golden. The official committee was advised by Paul Jasper of Perkins Coie LLP and Andrew Sherman of Sills Cummis & Gross PC. The hospital retained Cowen and Company, led by Lorie Beers and Justin Magner, as investment banker.
“This case has provided Force 10 with the incredible opportunity to work closely with Pachulski Stang, Perkins Coie and Sills Cummis to preserve the hospital for the community of Santa Cruz and Monterey Counties and navigate what we anticipate will be a consensus plan for reorganization,” said Jeremy Rosenthal, director of restructuring at Watsonville Community Hospital.
About Force Ten Partners LLC
Force Ten Partners, LLC, is a consulting firm with extensive knowledge in the area of ââfinancial and operational corporate restructuring, fiduciary, valuation, forensic accounting and complex litigation support. Force 10 serves middle market companies and their creditors, stakeholders and professionals by providing turnaround management (CRO), fiduciary and financial advisory services, expert witness support and investment banking services .