Westlake Surgical is in post-confirmation administration after the court confirmed a sponsor-backed reorganization plan, with the most recent docket activity limited to counsel transition rather than a new operating or litigation milestone. The hospital entered chapter 11 on September 8, 2023, as a physician-owned Westlake Hills facility carrying a mix of prepetition financing obligations, including eCapital, LendSpark, TVT, and Westrise debt identified in the Shen first-day declarationDkt. 56. Claims activity later reflected a capital stack with both secured and unsecured creditor pressure, including filed secured claims totaling about $4.7 million and unsecured claims totaling about $7.5 million.
The case ultimately moved toward reorganization rather than a sale or liquidation. The debtor’s amended plan, backed by Westlake Principal Partners, LLC as plan sponsor, proposed to cancel existing equity, issue new equity to WPP, convert eCapital’s impaired claim into a $6.5 million superpriority exit facility, provide Westrise with 14% of WPP Class II units, and fund general unsecured creditor recoveries through a $1.5 million cash pool supported by an initial contribution and post-emergence payments under the Amended Chapter 11 PlanDkt. 609. The plan also contemplated a $3.5 million WPP effective-date contribution, reserve funding for administrative and professional claims, and ongoing payments tied to excess average liquidity.
The court approved the disclosure statement on a final basis and confirmed the plan on February 27, 2025, setting the debtor on a reorganized-operations path rather than continued in-court restructuring. The approved the WPP-sponsored plan, the eCapital exit facility structure, the GUC cash pool, the debtor’s conversion to a Texas LLC, assumption of key landlord leases with cure payments, rejection of non-assumed contracts, and post-effective-date claim and fee bar dates. The order also set an August 26, 2025 deadline for a final decree application, while the May 21, 2026 states that Hayward PLLC remains debtor counsel and that the withdrawal will not affect pending hearings, deadlines, or other matters.
