Brotman Medical Center entered Chapter 11 on October 25, 2007 as a Culver City health-care business, listing its address at 3828 Delmas Terrace and identifying Michael Lane as chief executive officer and petition signer source filing. Lane described Brotman as a 420-bed acute-care hospital with about 800 employees, more than 600 affiliated physicians, roughly $81 million of revenue for the 11 months ended August 31, 2007, and approximately $58.9 million of liabilities, split between about $29 million of secured debt and $29.7 million of unsecured debt source filing. The filing followed severe liquidity pressure, including negative $8 million EBITDA, a $12 million net loss, CapitalSource cash sweeps, and immediate DIP needs to fund payroll, benefits, and medical supplies source filing.

The court confirmed the Second Amended Joint Chapter 11 Plan proposed by Brotman and the Official Committee of Unsecured Creditors after a January 21, 2009 confirmation hearing source filing. The order authorizes JHA and exit financing, implementation documents, new common stock, and a Creditor Trust administered by Luana Murphy, Brad Kelly, and Larry Whitley. The trust receives $2.5 million of Class 4 cash on the effective date plus another $1.0 million by June 30, 2009, and takes avoidance-action authority, while the committee winds down after the effective date except for specified residual matters source filing.