Current posture

What matters now

Dynacq Healthcare remains in Chapter 11 in a post-sale reconciliation phase: its principal asset sale closed on March 20, 2026, and the debtors were still reconciling receivables, postpetition payables, and taxes at the end of June, according to the June monthly operating report Dkt. 261. The case began on December 8, 2025, after sustained operating losses and liquidity pressure at the Pasadena specialty hospital. Dynacq attributed the filing to long-running workers’ compensation reimbursement litigation, the spring 2025 departure of a major surgical group, and prepetition vandalism that stripped copper wiring, caused a total power failure, and left the facility unable to receive patients; management entered Chapter 11 to market and monetize the enterprise and its assets, as described in the first-day declaration Dkt. 22. Liquidity and the sale process were linked from the outset. The court ultimately approved a $5 million senior secured DIP facility administered by Caliburn Capital, LLC, bearing 15% interest and supported by priming liens and superpriority claims. The financing order imposed a budget and sale milestones that contemplated a bid deadline 90 days after filing, a…

Updated Jul 30, 2026