Case filing & court posture: Oroville Hospital, a nonprofit healthcare system operating a 133-bed acute care hospital and 126-bed skilled nursing facility in Butte County, California, filed chapter 11 on December 8, 2025 in the Eastern District of California (Case No. 25-26876). Dkt. 1 Judge Christopher D. Jaime presides. The case was initially assigned to Judge Klein and transferred the same day. Dkt. 4
Liquidity & financing path: The Debtors filed an emergency motion for interim and final orders authorizing postpetition financing and use of cash collateral on December 10, 2025. Dkt. 58 The Court approved the DIP facility on an interim basis on December 11, 2025, and entered an amended interim order on December 15, 2025. Dkt. 112 The DIP was again approved on an interim basis at the January 15, 2026 hearing, with the final order still pending amid objections from multiple parties. Dkt. 283 Supplemental notices of the proposed final DIP order were filed on January 23 and January 28, 2026.
Sale process: The Debtors filed a motion to approve auction sale format and bidding procedures on January 7, 2026, signaling the case is proceeding as a section 363 sale. Dkt. 211 The Debtors retained Cain Brothers as investment banker to run the marketing and sale process. Dkt. 138
Stakeholder activity & case administration: An official committee of unsecured creditors was appointed on December 23, 2025. Dkt. 145 A patient care ombudsman was appointed on January 22, 2026 after the Court sustained the order to show cause. Dkt. 321 The Debtors filed a turnover motion under section 542 on February 9, 2026, seeking recovery of approximately $30.7 million in funds. Dkt. 409
Current status: The case remains active with several contested matters pending, including the final DIP financing order and the section 363 sale process. The most recent filings involve disputes over the proposed final DIP order terms among the Debtors, UMB Bank, the Affiliates, and other secured creditors. Dkt. 416
