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Pacifica of the Valley is operating under second interim cash-collateral authority, with a four-week budget running through the week ending August 22 and final cash-collateral relief set for August 27; no debtor-in-possession loan facility has been disclosed. The Second Interim Cash Collateral Order Dkt. 148 authorizes continued use of cash collateral and provides adequate protection to prepetition secured parties while final relief remains pending, making liquidity management and the upcoming final hearing the immediate case drivers. The hospital operator filed Chapter 11 on July 4, 2026. Its first-day declaration attributes the filing to operational and financial pressure including COVID-era costs, seismic retrofit fines, a 2024 cyberattack, unpaid rent and amounts owed to L.A. Care, against a capital structure that included approximately $35 million of funded debt under the Main Street Priority Loan; it also describes an unresolved dispute over Axios Capital Solutions' claimed assignment of that loan. First-Day Declaration Dkt. 16 The case commenced as an operating restructuring intended to preserve patient care, with a chief restructuring officer installed and cash-collateral relief sought to fund operations. Cash-Collateral Hearing Notice Dkt…
Updated Aug 11, 2026
Aug 27, 2026
Commencement & Financing · 2:00 PM ET · Hon. Thomas M. Horan · Courtroom 7
Supplemental Declaration of Andrew H. Sherman in Support of Application to Retain and Employ Sills Cummis & Gross P.C. as Co-Counsel for the Official Committee of Unsecured Creditors of Pacifica of the Valley Corp., Effective as of July 20, 2026 (Filed by Committee of Unsecured Creditors)
Docket 165 · Aug 20, 2026
Order Approving Stipulation by and Between the Official Committee of Unsecured Creditors, Axios Capital Solutions, LLC, and L.A. Care Health Plan Extending the Challenge Period
Docket 164 · Aug 17, 2026
Certification of Counsel Regarding Order Approving Stipulation by and Between the Official Committee of Unsecured Creditors, Axios Capital Solutions, LLC, and L.A. Care Health Plan Extending the Challenge Period (Filed by Committee of Unsecured Creditors)
Docket 163 · Aug 17, 2026
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