VISTA HOSPITAL SYSTEMS, INC.

DSI'S Role

Post-Confirmation Plan Administrator and Sole Remaining Officer

Services Provided

  • Claims Analysis and Distribution

VISTA HOSPITAL SYSTEMS, INC.

Case Highlights

  • Administered over $120 million in asset sale proceeds
  • Pursued avoidance actions and claims reconciliation

Case Narrative

DSI served as the Post-Confirmation Plan Administrator and Sole Remaining Officer of these non-profit hospitals after confirmation of the hospitals’ plan of liquidation and the sale of the operating assets of the three hospitals to Universal Health Services.  DSI took possession of more than $120 million in sale proceeds, paid the bondholders an initial payment on their debt of $103 million, and thereafter oversaw the post-sale reconciliation process with the buyer, reconciling claims and pursuing avoidance actions.  Unsecured creditors and any net recoveries to the bondholders received their pro rata share of the funds reserved from the pre-confirmation asset sale and the bondholders recovered an additional $15 million from the recovery of Medicare reimbursements and liquidation of other assets not sold as part of the pre-confirmation asset sale.