Verity Health System eyes exclusivity extension to implement ‘plan B’

By Caroline Salls

Pittsburgh, Jan. 2 – Verity Health System of California, Inc. requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Central District of California.

Specifically, Verity is asking the court to extend its exclusive plan-filing period to March 2 from Dec. 31 and the solicitation period to April 30 from Feb. 29.

As previously reported, the Dec. 30 hearing on approval of the disclosure statement for the company’s previously filed plan was not held because Verity said it intended to file an amended plan.

According to the motion, the company’s need to implement a “plan B” after a sale of its remaining non-profit hospitals failed to close “raises issues of healthcare regulatory law, labor law, mergers and acquisitions law and bankruptcy law, among other fields.”

In addition, Verity said there are numerous pending medical malpractice, personal injury and employment law-related cases that the court has allowed to proceed through relief from the automatic stay, and the company needs to hold negotiations regarding its vendor relationships.

A hearing is scheduled for Feb. 4.

Verity is a Los Angeles-based nonprofit health care system. The company filed bankruptcy on Aug. 31, 2018 under Chapter 11 case number 18-20151.

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