Court Approves Loan Amendment Giving Oroville Hospital Additional Time and Funding to Negotiate Restructuring Plan or Sale Agreement
OROVILLE, Calif. – Aug. 11, 2026 – The U.S. Bankruptcy Court Judge overseeing Oroville Hospital’s Chapter 11 case today approved an amendment to the hospital’s Debtor-In-Possession (DIP) loan that gives the hospital additional time and funding to negotiate a restructuring plan or sale agreement.
The hospital will work with the DIP Lender and Master Trustee, acting on behalf of the hospital’s bondholders, to negotiate by Oct. 16 a term sheet setting out a detailed plan for a potential restructuring of the hospital’s operations and finances.
Judge Christopher D. Jaime issued the ruling following a Aug. 11 hearing in the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. The DIP Loan amendment agreement was entered into on July 24 by Oroville Hospital, OroHealth Corporation, the DIP Lender and Master Trustee, on behalf of the hospital’s bondholders.
The hospital issued the following statement regarding today’s court ruling:
“We are pleased with the court’s decision to approve the DIP loan amendment that we negotiated with the DIP Lender and Master Trustee. We will continue to work collaboratively to develop a comprehensive and effective restructuring plan or sale that will ensure Oroville Hospital’s continued operations as a vital healthcare provider and employer.
“This agreement reflects our shared commitment to achieving a positive resolution that serves the best interests of our patients, employees, physicians and community.”
For more information, email OrovilleHospital@Epiqglobal.com or go to https://dm.epiq11.com/case/orovillehospital/dockets.
About Oroville Hospital
Oroville Hospital is a community hospital dedicated to providing the finest personalized healthcare to the Oroville and the surrounding foothill and valley communities by offering a wide range of integrated services from prevention through treatment to wellness. For more information, please visit www.OrovilleHospital.com.
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