Promise Healthcare Group, LLC

Promise Healthcare is in post-confirmation liquidation, with the Liquidating Trustee still filing quarterly reports and targeting a final decree application by December 31, 2026. The case began when the healthcare operator filed chapter 11 on November 5, 2018 after reimbursement pressure, operating losses, heavy funded debt, and liquidity constraints left its facility network unable to continue outside a court-supervised restructuring; the first-day declaration described an 18-facility platform across nine states, more than 4,400 employees, over $565 million of debt obligations plus accrued interest and trade payables, and LTACH reimbursement changes that sharply reduced payments for non-qualifying patients under Medicare criteria First Day DeclarationDkt. 18.

The filing was financed around an $85 million DIP package, including a $65 million roll-up and $20 million of new money, against a capital structure that included Wells Fargo ABL debt and substantial intercompany and note obligations DIP Financing MotionDkt. 17. The early case posture was operationally focused: maintaining patient care, payroll, cash management, critical vendors, and confidentiality protections while pursuing facility and asset-sale alternatives through a court process described in the first-day record First Day DeclarationDkt. 18.

By mid-2020, the case had shifted from operating stabilization and asset monetization into a liquidation path. The debtors filed a Second Amended Joint Plan of Liquidation with nine classes on July 30, 2020 , followed by plan-supplement notice activity at the end of August . Recent reports state that the plan was confirmed on September 17, 2020 and became effective on October 1, 2020.