Oroville Hospital and Key Stakeholders Negotiate Amendment to Extend Post-Petition Financing and Permit Restructuring or Sale of the Facility
OROVILLE, Calif. July 27, 2026 – Oroville Hospital, OroHealth Corporation, the Debtor-In-Possession (DIP) Lender and Master Trustee, on behalf of the hospital’s bondholders, today entered into an agreement to amend the DIP loan documents, subject to approval of the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. The amendment extends the post-petition financing and permits the hospital to pursue a dual-track approach to either restructure its operations or complete a sale.
The hospital issued the following statement regarding the agreement:
“Today’s agreement represents a new, more collaborative step in the bankruptcy process, with these key stakeholders willing to keep working together to help continue Oroville Hospital’s long-term future as a vital healthcare provider and employer in our community. Upon court approval, the Chapter 11 timelines and milestones will be extended to ensure the hospital’s continued operations while we work to complete a restructuring or sale.
“We have made significant progress to date in our negotiations with the bondholders and other stakeholders, but we are not finished yet. The important thing is that we remain committed to continuing in this renewed spirit of cooperation to achieve the best possible outcome for our patients, employees, physicians and community.
“We appreciate the continued dedication of our physicians, nurses, and other clinical and non-clinical employees for maintaining our high standards of quality care and patient safety while we continue to work through this process.”
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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