South Hills Operations, LLC and 21 affiliated debtors, operating 13 skilled nursing facilities with approximately 2,046 licensed beds across Western Pennsylvania (Cuarzo, Maybrook, and Consulate facility groups), filed for Chapter 11 protection on May 17, 2024 in the Western District of Pennsylvania (Case No. 24-21217) before Judge Carlota M. Bohm. The debtors faced economic stress from COVID-19-driven census declines, labor shortages requiring high-cost agency nurses, and insufficient Medicaid reimbursement rates. Prepetition secured debt approximated $55 million (Maybrook/Consulate); general unsecured claims exceeded $54 million. The debtors obtained DIP financing totaling $43.74 million (Maybrook/Consulate: $38M; Cuarzo: $5.74M). Substantially all Maybrook and Consulate assets were sold to Kadima Healthcare Group, Inc. for $53 million; Cuarzo assets sold to WeCare Center with landlord incentives. The Combined Plan of Liquidation was confirmed August 20, 2025 and became effective September 11, 2025. General unsecured creditors face 1-5% recovery; priority tax creditors face 5-10% recovery.
