Pacifica of the Valley Corporation has commenced Chapter 11 proceedings. The Sun Valley, California-based company operates Pacifica Hospital of the Valley, a hospital and healthcare center serving the region.
With this move, the business adds to a surging number of health-based service providers that have attempted to reorganize through bankruptcy.
Pacifica of the Valley Corporation Files for Bankruptcy
Court records filed through PACER show the company submitted its Chapter 11 petition on July 4, 2026. The petition lists estimated liabilities that significantly exceed the company’s estimated assets.
President and CEO Precious Mayes signed the bankruptcy petition. Court records add that Laura Davis Jones is the legal representative for the business. Dentons US, LLP is retained as the general bankruptcy counsel in the case.
What Led to the Filing
The petition lists a resolution of the sole director of the debtor dated July 2, 2026. According to the resolution, the sole director authorized the company to seek Chapter 11 protection after reviewing its financial condition and operations.
The resolution states the director considered the company’s financial performance, current and long-term obligations, and recommendations from management and its professional advisors.
The document also authorizes the company’s President to appoint a Chief Restructuring Officer (CRO). The CRO would oversee the company’s restructuring efforts and assist with management and operations.
The document shows that the director has authorized management to pursue debtor-in-possession financing and establish operating budgets for continued operations. The financing would provide the liquidity needed to support ongoing hospital operations during the restructuring.
Highlights from the Petition
Pacifica of the Valley Corporation submitted a list of creditors with the largest unsecured claims. The Internal Revenue Service is listed with an unsecured claim exceeding $45 million. Other names, as given in the list, are Reliq Capital Partners, Department of Water & Power, M G Industries, Sierra Health Group LLC, and more.
The list also shows a disputed unsecured claim of over $44 million made by Axios Capital Solutions LLC.
A summary of the Chapter 11 petition is shared here:
- Filing Date: July 4, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Delaware
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-11060
- Estimated Assets: Between $50,000,001 and $100 million
- Estimated Liabilities: Between $100,000,001 and $500 million
- Estimated Creditors: Between 1,000 and 5,000
- Reason for Filing: Restructure business under court supervision
About the Company
Court filings state that the debtor is currently operating as Pacifica Hospital of the Valley. The business has operated as a 231-bed acute care hospital for more than three decades. Based in Sun Valley, it provides 24-hour emergency services and several offerings under inpatient and outpatient care.
According to its website, the hospital is accredited by The Joint Commission and offers a broad range of medical services. Services include emergency care, behavioral health, treatment for minor illnesses and injuries, surgical care, rehabilitation, and other medical services.
Recent Bankruptcy Filings by Healthcare Providers
Several healthcare providers across the country have filed for bankruptcy in recent months. These include mental health clinics, hospice facilities, and others.
North Texas Behavioral Clinic, LLC submitted its bankruptcy petition on June 23, 2026. Court records showed the clinic’s estimated liabilities exceeded its assets. The Arlington-based facility serves across locations in North Texas.
A hospice care provider from McDonough, Georgia, entered bankruptcy proceedings on May 5, 2026. The petition showed that The Lighthouse Community Hospice, Inc. decided to proceed with a Subchapter V filing. The healthcare facility offers its hospice and palliative care services across 12 Georgia counties.
Boca Raton, Florida-based Lucienne Home Care, Inc. turned to Chapter 11 protection on April 1, 2026. The clinically run home healthcare company faced a wide gap between its assets and liabilities during the filing. Since 2015, it has offered skilled nursing, home health aide support, speech therapy, and more services.
One of the home healthcare businesses from El Paso, Texas, made its Chapter 11 filing on March 23, 2026. Case records show that the creditors of Altomar Home Healthcare Inc. have until July 28 to submit the Proof of Claim. The business has been serving older adults, infants, and the disabled since 1999.
Pacifica of the Valley Corporation joins a growing list of healthcare providers seeking to reorganize through Chapter 11 as it works to stabilize its finances and continue operating under court supervision.
