White Rock Medical Center, LLC enters late June 2026 with its plan track freshly reset: the debtor withdrew its amended plan, disclosure statement, and solicitation motion on June 25, 2026Dkt. 341, one day after Judge Alfredo R. Pérez approved a management-transition settlement, a $3.0 million debtor-in-possession facility, and final cash-collateral authority. The withdrawal is a planned handoff rather than a collapse of the case: the approved settlementDkt. 337 removes CEO Dr. Mirza Baig, installs Erik White as sole manager of all debtors, and vests the Chief Restructuring Officer with exclusive authority to propose a new plan backed by plan sponsor White Rock Medical Holdings LLC.
The case began on January 20, 2026, when White Rock Medical Center and its affiliated debtors filed chapter 11Dkt. 1 in the Southern District of Texas. According to the first-day declaration of COO Rashid SyedDkt. 18, the debtors operate a 218-bed safety-net hospital in East Dallas serving roughly 30,000–35,000 patients annually and manage Heights Hospital in Houston, with the distress traced to the September 2023 acquisition of WRMC from Pipeline Health System—alleged receivables overstatements exceeding $11 million, lost electronic-health-record access, and vendor and payroll disruption. The debtors carry roughly $30 million of funded debt: a ~$5.37 million secured Pipeline purchase note, ~$7.6 million of secured vendor equipment obligations, and a ~$17 million unsecured REILS credit-facility exposure.
Cash collateral was contested through the spring. Pipeline Health System Holdings and SRC Hospital Investments I supplemented their objection in late MarchDkt. 181, citing a $760,000 three-week revenue shortfall and deteriorating liquidity; the court nonetheless extended use of cash collateral through a third interim orderDkt. 199 granting Pipeline replacement liens, superpriority claims, and $75,000 monthly adequate-protection payments. On June 24, 2026, the court entered a final orderDkt. 338 raising adequate-protection payments to $100,000 monthly and approving a $3.0 million DIP term loan from White Rock Investors LLC at 15% PIK, maturing September 17, 2026.
The restructuring now runs on the settlement's milestone schedule: a refiled plan and disclosure statement within five business days of the final DIP order, disclosure-statement approval by mid-July, a confirmation hearing no later than September 2, 2026, and an effective date targeted by September 17 (outside date September 30), with a status conference scheduled for July 20, 2026.
