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 ...