Steward Health Fights Government Call for Trustee-Run Bankruptcy

Steward Health Care System LLC opposed requests from the Justice Department’s bankruptcy monitor and a group of doctors to convert its Chapter 11 case to trustee-supervised liquidation, saying they haven’t shown a “substantial or continuing loss” to the estate.

The fallen health-care network argued in a Thursday objection in the US Bankruptcy Court for the Southern District of Texas that the proposed liquidation plan and settlement between Steward, a group of lenders, and the creditors’ committee maximize estate value and are the only means to recover for unsecured creditors and provide funding for administrative expenses.

Steward contended that a conversion ...