O’Melveny Obtains Bankruptcy Judge Approval of Transaction That Provides Uninterrupted Mental Health Services to Glendale-Area Residents

5월 11, 2011






Piper Hall                                      Julie Fei

O’Melveny & Myers LLP                O’Melveny & Myers LLP

202.220.5022                                213.430.7792

202-870-1800 (cell)                    213.440.7792 (cell)

phall@omm.com                           jfei@omm.com




LOS ANGELES, CA -- MAY 11, 2011 -- A team of lawyers from O’Melveny & Myers LLP secured judicial approval of the sale of its client Verdugo Mental Health to Didi Hirsch Mental Health Services that will not cause any interruption of services to Verdugo's patients in the Southern California communities of Glendale and Burbank. The sale is expected to close May 20, 2011.


O’Melveny’s team of lawyers from the Restructuring Practice Group in the Los Angeles office represented Verdugo Mental Health in its Chapter 11 bankruptcy filing in the US Bankruptcy Court for the Central District of California, donating thousands of hours to this matter pro bono. The legal team was led by partner Evan Jones, counsel Andrew Parlen, and Jennifer Taylor, and included associates Patricia Verdugo-Chatel, Jamie Oh, Evan Pickering, and former partner David Enzminger, among others.


“Our primary concern was to ensure that the community won't suffer any gaps in services and that the execution of this transaction will provide that seamless transition,” Jones said. “This case also serves as an example to other inspiring community service organizations that the pro bono efforts of dedicated law firms, like O’Melveny, can provide viable options when there seemingly are none.”


Verdugo is a long-standing and highly respected nonprofit mental health agency providing low-cost services to more than 2,000 clients in Glendale and the surrounding areas. In the current financial climate, donations were declining, leaving the agency’s long-term survival in doubt. Verdugo is selling its key assets to Didi Hirsch Mental Health Services so that these critical mental health services remain available in the Glendale community. Verdugo will continue providing mental health services to its clients until the sale closes. With cooperation from the California Office of Statewide Health Planning and Development and the Los Angeles County Department of Mental Health and the court’s approval, Didi Hirsch plans to continue services immediately after the sale closes—at the same location on Colorado Street in Glendale, California, with many of the same dedicated staff. 


About O’Melveny & Myers LLP

With approximately 900 lawyers in 14 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com