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Published on 1/11/2023 in the Prospect News Distressed Debt Daily.

Desert Home Care seeks 120-day extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Jan. 11 – Borrego Community Health Foundation, which does business as Desert Home Care, is seeking an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of California.

Specifically, the company asked to extend the exclusive plan filing period through May 10 and the exclusive solicitation period through July 7.

The debtor said it has been focused on the ongoing administration of the case, the continuing operation of a federally qualified health center, and the litigation and mediation with California Department of Health Care Services.

The company is also in the process of conducting a sale of substantially all of its assets in order to transfer its network of community clinics.

Desert Home said the requested extension will allow it to complete the sale process and propose a more meaningful plan after the sale and the mediation are further along.

A hearing is scheduled for Feb. 22.

The San Diego-based provider of in-home skilled nursing services filed Chapter 11 bankruptcy on Sept. 12 under case number 22-02384.


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