Frantz Ward Team Aids The Bellevue Hospital in Successful Chapter 11 Bankruptcy Reorganization

Frantz Ward Partners Craig T. Haran, Joel R. Hlavaty, Bradley D. Reed, and Associate Naomi G. Tellez recently served as Special Corporate Counsel in The Bellevue Hospital’s (TBH) Chapter 11 bankruptcy reorganization, resulting in its successful acquisition by Firelands Health.

Over the past several months, our team provided extensive counsel to TBH’s Board of Trustees and leadership on all health care corporate matters which led to the decision to file for Chapter 11. The reorganization plan was approved by the US Bankruptcy Court, Northern District of Ohio, Western Division on April 16, 2025.

We assisted the hospital with:

• General health care, corporate, and labor and employment law matters
• Marketing matters
• The negotiation of acquisition agreements and related documents
• Administration of due diligence
• Coordinating the provision of notice of the non-profit hospital combination to the Ohio Attorney General’s Charitable Law Section
• Closing the member substitution transaction

Frantz Ward worked closely with TBH’s bankruptcy counsel to negotiate with the senior secured creditor and Firelands Health for a stalking horse bid and debtor-in-possession financing. The hospital filed for bankruptcy in early February 2025, and we worked with the bankruptcy counsel and Juniper Advisory, TBH’s investment banker, to market the hospital for sale to other prospective purchasers.

This effort culminated in the receipt of an alternative competitive bid for the hospital.   Firelands Health and the alternate bidder then participated in a competitive auction for the right to acquire Bellevue. Firelands Health was ultimately determined to be the successful bidder after a two-day auction and 22 bidding rounds. The member substitution transaction through which Firelands Health acquired sole ownership closed on May 16, 2025.

The auction was an overwhelming success, resulting in a return of maximum value to TBH’s bankruptcy estate in the form of:

• $17.6 million in senior secured creditor claims satisfied.
• $6.5 million for a general unsecured creditor’s fund, anticipated to fully repay the hospital’s unsecured creditors.
• Fireland’s commitment to operating the Bellevue Hospital for at least five years and investing $16 Million in capital improvements into the hospital.

TBH’s continued service will preserve over a century of history, save over 350 jobs, and continue the hospital’s mission of providing access to quality healthcare for the Bellevue, Ohio community.

See Fireland’s press release regarding the acquisition here.

This reorganization was also covered in the Fremont News Messenger and Sandusky Register.