(WJET/WFXP) — Prospect Medical Holdings, a “comprehensive network” of hospitals and affiliates, filed for Chapter 11 bankruptcy late Saturday, along with its approximately 60 subsidiaries.
According to the company, it will realign its organizational focus outside of California, Pending court approval, it plans to sell the Roger Williams Medical Center and Our Lady of Fatima Medical Center in Rhode Island. The company also continues conversations with key stakeholders outside of Rhode Island and with the Commonwealth of Pennsylvania to sell the Crozer-Chester Medical Center.
The Los Angeles-based company reported anywhere from $1 billion to 10 billion in debt and assets with over 100,000 creditors. The company cites “a recent number of challenges,” though does not go into detail about those challenges in the press release. More details about the challenges and headwinds are generally provided in subsequent court filings (known as First Day Motions)…