Hospital System Pipeline Health Approved to Exit Bankruptcy

Pipeline Health System LLC won bankruptcy court approval to reorganize its balance sheet and operations under a plan that cuts the community hospital operator’s debt by more than $330 million.

Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas approved Pipeline’s Chapter 11 plan during a hearing Friday, calling it a “remarkable achievement” that the company and its creditors worked together to keep its facilities “open for their communities.”

Pipeline, based in El Segundo, Calif., negotiated a fully consensual Chapter 11 plan resolution after filing for bankruptcy in early October. Under the plan, secured lenders ...