Georgia ProtonCare Center Inc.: Emory Leads $110M Sale

Georgia ProtonCare Center Inc., a nonprofit operator of a proton therapy cancer center in Midtown Atlanta, filed chapter 11 on January 22, 2026 in the U.S. Bankruptcy Court for the Northern District of Georgia to pursue a going-concern sale anchored by a 110 million stalking horse bid from Emory University. The case is structured to facilitate an orderly sale process while preserving patient care. The filing centers on a bond-financed healthcare facility that opened in 2018 and relies on Emory Healthcare for clinical services. The debtor’s capital structure includes roughly 550 million in tax-exempt bonds issued to finance construction and equipment, with senior and subordinate bondholders occupying most of the creditor stack.

The restructuring aims to preserve patient care continuity while transitioning ownership of a specialized radiation oncology asset with significant fixed costs and long-lived equipment. Court filings describe liquidity constraints tied to patient reimbursement rates, inflationary cost pressures, and a debt service burden that the center’s operating cash flow could not support. The debtor’s initial motions and proposed milestones target a rapid auction timetable, while interim orders address cash collateral usage, patient confidentiality, and healthcare-specific operating needs.

Debtor(s)	Georgia ProtonCare Center Inc.
Court	U.S. Bankruptcy Court, Northern District of Georgia (Atlanta Division)
Case Number	26-50882-JWC
Petition Date	January 22, 2026
Judge	Hon. Jeffery W. Cavender
Facility	Proton therapy center at 615 Peachtree St. NE, Atlanta
Operations	Proton therapy center in Midtown Atlanta; clinical services provided by Emory Healthcare. project profile
Total Bond Debt	Approximately 550 million in tax-exempt bonds (senior + subordinate)
Stalking Horse	Emory University Hospital Midtown; 110 million purchase price
Cash Collateral	Bond trustee-controlled accounts; 16-week budget and sale-driven milestones

Restructuring

Sale-centered strategy. The debtor's chapter 11 strategy is built around a going-concern sale that preserves patient access to proton therapy while transferring ownership of a highly specialized medical facility. The Sale Motion proposes a stalking horse asset purchase agreement with Emory University Hospital Midtown at a $110 million purchase price, a structure also described in reporting on the case's early milestones and creditor expectations. The sale proposal indicates a deposit equal to 4% of the purchase price, a break-up fee capped at 3% of the purchase price, and expense reimbursement capped at 1% of the purchase price, with bid protections designed to set a baseline for competitive offers.

Asset package. The contemplated asset sale covers substantially all operating assets required to continue patient care: real estate, proton therapy equipment, records (including patient records), licenses and permits, and key operating contracts. The asset purchase agreement also contemplates the transfer of accounts receivable up to a defined cash cap, a structure intended to provide the buyer with working capital while setting a ceiling on the value of receivables included in the sale. The transaction framework also requires that patient care and clinical operations remain uninterrupted, a critical consideration in healthcare chapter 11 cases where services cannot pause during a restructuring.

Assumed liabilities and continuity terms. The sale structure outlined in court filings includes the assumption of limited postpetition trade payables and cure obligations, subject to caps and exclusions, alongside the assumption of liabilities directly tied to purchased assets. This approach is designed to keep essential clinical and operational contracts in place while limiting the estate’s exposure to liabilities that are not integral to ongoing patient care. The asset package’s inclusion of patient records and operating permits reflects the need to transfer regulatory approvals and clinical continuity, especially where licensing and healthcare compliance requirements are tied to the facility.

Proposed timeline. The case’s initial sale calendar targets a front-loaded marketing and auction process. Under the debtor’s proposed milestones, the process begins with an early bid procedures hearing, followed by a marketing period and an auction scheduled for April 2026, with a sale hearing shortly thereafter. The bid procedures in early filings contemplate an abbreviated schedule if no qualified bidders emerge by a letter-of-intent deadline, allowing the court to consider a stalking horse sale on an expedited path. The timeline reflects the debtor’s view that a fast sale is the most viable path to preserve enterprise value in a specialized healthcare facility with fixed-cost operations.

Bid protections. The stalking horse agreement includes a deposit, break-up fee, and expense reimbursement that set the floor for competing bids while compensating the initial bidder for due diligence and process costs. The bid protections were structured as a percentage of the purchase price, with the deposit set at 4% and bid protections capped at a combined 4% of value. These protections are common in single-asset healthcare sales where a credible initial bidder reduces execution risk and provides a baseline for auction competition.

Strategic rationale. The facility is capital-intensive, with revenue driven by patient volume and reimbursement rates. Court filings describe a mismatch between cash flow from clinical services and the debt service burden tied to the tax-exempt bond structure, which underpinned construction and equipment funding. The sale process is designed to maximize recovery for bondholders while preserving clinical services for patients and physicians who rely on proton therapy capacity in the Atlanta market. The involvement of Emory University also reflects the clinical integration already in place at the facility.

Governance and oversight. The debtor retained restructuring advisors and appointed a chief restructuring officer to oversee the process. Court filings identify BDO Consulting Group as the CRO and financial advisor, reflecting the need for specialized operational oversight in a healthcare setting. The case structure anticipates continued operations through the sale process, with ongoing vendor relationships and service contracts managed under interim first-day relief and cash collateral usage.

Capital Structure and Creditor Dynamics

Bond-financed construction. The proton therapy center was financed through tax-exempt municipal bonds issued by the Atlanta Development Authority, with a 2017 bond issuance used to fund construction completion and equipment procurement. The project profile for the Emory Proton Therapy Center notes that bond financing closed in July 2017, with Citigroup Global Markets as lead arranger and Piedmont Securities as structuring agent, and that the facility includes five treatment rooms, a proton cyclotron, and a structured parking deck on a 2.39-acre parcel. The bond structure facilitated the development of a specialized healthcare facility that would have been difficult to fund through traditional bank debt given the long ramp-up period for patient volume.

Series detail and issuance structure. The 2017 tax-exempt financing included senior series bonds used to complete construction and procure equipment, alongside subordinate series intended to support the overall capital stack. The issuance structure reflected the project’s need for a long-term amortization profile, a common characteristic of capital-intensive healthcare assets. The debtor’s court filings list separate senior and subordinate series with distinct priority and repayment rights under the trust indenture and related security documents.

Senior and subordinate tranches. The First Day Declaration lists two senior bond series and multiple subordinate series, with senior principal of roughly $242.7 million plus accrued and unpaid interest of about $67.6 million, and subordinate principal of approximately $207.5 million plus accrued and unpaid interest of about $32.4 million. At maturity, the subordinate bonds’ face value rises further due to capitalized interest. The overall bond debt approximates $550 million, consistent with contemporaneous reporting that places total outstanding tax-exempt bond debt in the mid-$500 million range.

Waterfall and recovery implications. The bond indenture establishes a payment waterfall that prioritizes senior bonds ahead of subordinate bonds and other subordinated obligations. The subordinated status of certain Emory-related fees means that a sale that falls short of total debt may leave non-senior stakeholders with limited recoveries. This waterfall structure is central to the creditor dynamics in the case, as it shapes how sale proceeds will likely be distributed if the transaction closes at or near the stalking horse price.

Bond trustee and collateral. The bond trustee is UMB Bank, N.A. (successor to U.S. Bank), with the Atlanta Development Authority serving as conduit issuer. The collateral package described in court filings includes a security deed covering real property and related rights, assignment of key contracts, and a deposit account control agreement over cash. That collateral structure is central to the cash collateral motion and the adequate protection package offered by the debtor.

Trade claims and intra-system obligations. Court filings identify trade and vendor claims of roughly $29.5 million and accrued Emory-related royalties and administrative fees of about $22.3 million. The Emory-related fees are described as subordinated under the bond indenture waterfall, which may influence recoveries for non-bond creditors. That waterfall places bondholder recoveries ahead of certain subordinated obligations, a typical structure for tax-exempt conduit financings.

Market pricing signals. Reporting on the case notes that senior bonds due 2035 traded at deeply discounted levels in 2025 and that the proposed $110 million sale price would cover only a fraction of total bond debt. The market pricing reflects the challenges faced by single-asset, bond-financed proton centers where revenue is sensitive to patient volume and reimbursement policy.

Trading and valuation context. Bond market coverage reported that senior 6.75% bonds due 2035 traded for about 20 cents on the dollar in October 2025, and that the $110 million stalking horse price would cover roughly 20% of total bond debt. That coverage framed the deal economics as implying a steep recovery shortfall, noting an estimated 65% haircut for senior bondholders and subordinate bondholders who are likely to be out of the money. The trading data offers an external signal of how the market was valuing the collateral relative to the debt stack heading into the bankruptcy.

Reported sale schedule. Bond market reporting also described a proposed calendar that included a bid procedures hearing February 3, a 75-day marketing period, a stalking horse hearing in early March, and an auction in mid-April. The court schedule may shift as the case progresses, but the reported timeline aligns with the debtor’s push for a front-loaded process that preserves clinical continuity while moving quickly toward a sale.

Creditor incentives. With a bond-heavy capital structure and a single large asset, the case positions bondholders as the primary stakeholders in the restructuring process. The cash collateral motion, the stalking horse process, and the bid protection structure all reflect negotiation with the bond trustee and bondholder constituencies, who are expected to shape the path toward a sale or other outcome.

Cash Collateral and First-Day Relief

Cash collateral framework. The debtor's Cash Collateral Motion seeks authority to use cash collateral held in trustee-controlled accounts under a deposit account control agreement. The motion proposes a 16-week budget, rolling reporting, and adequate protection packages that include replacement liens on postpetition collateral, supplemental liens where available, and a superpriority claim. The proposed structure is designed to maintain operational liquidity while protecting bondholder collateral.

Budget mechanics. The cash collateral budget is structured to align expenditures with ongoing clinical operations, payroll, vendor support, and facility maintenance. Weekly reporting and variance testing give the trustee visibility into cash usage against projections. The use of a 16-week budget horizon matches the sale process calendar and allows creditors to evaluate cash usage against expected milestones.

Milestones and reporting. The cash collateral package includes milestones that align with the proposed sale schedule, including deadlines for entry of a bid procedures order and a final cash collateral order. These milestones are tied to the goal of moving quickly toward a sale while ensuring that the trustee can monitor cash usage and performance against budget. The use of a rolling variance test reflects common creditor protections in healthcare restructurings.

Professional fee carve-out. The adequate protection package includes a carve-out for professional fees, ensuring that the estate can fund the legal and advisory work needed to administer the case. Carve-outs are a standard feature in cash collateral orders to balance creditor protections with the need to preserve a functional bankruptcy process.

Interim first-day orders. The court entered interim orders early in the case approving cash management, utilities, insurance, and redaction procedures, along with a Patient Confidentiality Order designed for HIPAA-compliant service and data handling. A Schedules Extension Order recognizes the administrative burden of the case's complex, bond-financed structure.

Operational continuity. First-day relief addresses the need to continue paying critical vendors and service providers essential to a medical facility, including utilities, insurance, and IT or equipment maintenance. The debtor’s filings emphasize that any disruption could affect patient treatment schedules and clinical operations. The court’s interim orders preserve operating continuity while the debtor moves toward sale milestones.

Patient confidentiality and PII safeguards. The case includes a patient confidentiality order and a separate redaction order that establish procedures for filing healthcare-related documents without exposing patient data. These orders are standard in healthcare bankruptcies and permit compliance with HIPAA and other privacy requirements while maintaining transparency for creditors and the court. The presence of these orders indicates a focus on minimizing risk to patient information during a public court process.

Operations, Patient Care, and Clinical Partnerships

Clinical services model. The debtor operates a proton therapy facility but relies on Emory Healthcare and The Emory Clinic for clinical services under a management agreement. Court filings indicate that the debtor outsources other operational functions, including billing, marketing, and systems maintenance, reflecting a model in which medical expertise and clinical staffing are provided by an academic medical partner while the nonprofit owner focuses on financing and facility management.

Clinical footprint. The facility was designed to support multiple treatment rooms and patient flow, with equipment supplied by Varian Medical Systems and a layout that includes rotating gantries and a fixed-beam room. Industry references describe the center as a partner facility with five treatment rooms, reflecting the specialized equipment required for proton therapy.

Opening and equipment profile. The center opened in December 2018 with a highly specialized equipment footprint that includes a 90-ton cyclotron and four 240-ton gantries. Emory’s announcement described it as the first and only proton therapy center in Georgia and projected it would treat about 400 patients in its first year. Those scale and throughput expectations underscore why the debtor emphasizes continuity of operations during the sale process.

Utilization signals. Industry references report the facility has treated almost 3,000 patients since inception and uses pencil beam scanning, the most advanced delivery method for proton therapy. These data points support the debtor’s argument that the center remains clinically relevant even as its bond-financed capital stack proved difficult to service.

Patient volume and clinical role. The center’s clinical footprint is sizable, with a five-room treatment layout that includes rotating gantries and a fixed-beam room. The facility’s 2018 opening expanded access to proton therapy in Georgia. The center’s role in the regional oncology system is tied to Emory’s Winship Cancer Institute, an NCI-designated comprehensive cancer center.

Treatment platform. The facility is built around a cyclotron and gantry-based rooms that require specialized shielding and heavy-equipment infrastructure. The project profile underscores the scale and long-lived nature of the equipment, which makes operational continuity central to preserving value. project profile

Facility capabilities. The project profile notes five treatment rooms including a fixed-beam room and a structured parking deck designed to accommodate heavy equipment and radiation shielding requirements. project profile

Integration with Emory. The clinical partnership with Emory and Winship informs the proposed sale. Emory’s stalking horse bid and planned acquisition align with its existing role in delivering clinical care at the facility. Winship’s NCI designation, first awarded in 2009 and elevated to comprehensive status in 2017, provides a broader institutional context for Emory’s involvement in advanced cancer treatment.

Patient continuity considerations. Court filings emphasize that care for oncology patients must continue uninterrupted. Proton therapy often requires multi-week treatment schedules; a shutdown or significant operational disruption could have direct clinical consequences. The debtor’s approach to maintaining staff, physician relationships, and operational vendors is structured to avoid treatment gaps while the sale process advances.

Facility Development and Sponsor Background

Origins and stalled construction. The Georgia Proton Treatment Center project began under a predecessor entity and experienced a construction halt in 2015 due to funding shortfalls. Provident Resources Group later acquired the project’s assets and resumed construction following a 2017 bond issuance. The financing allowed the project to secure equipment, complete the facility, and commence operations.

Construction partners. The project profile identifies Brasfield & Gorrie as the general contractor and VOA Architects (now Stantec Architects) as the design firm. These roles highlight the specialized engineering and construction requirements for a proton therapy facility, which include shielding, heavy equipment installation, and precise building tolerances.

Project specifications. The facility is approximately 107,500 square feet and includes five proton treatment rooms—four with rotating gantries and one fixed-beam room—along with a 162-space structured parking deck. The site occupies roughly 2.39 acres in Midtown Atlanta and required specialized construction for heavy equipment and radiation shielding. These specifications illustrate the capital intensity of proton therapy facilities and the long-term fixed-cost profile that can strain a highly leveraged balance sheet.

The facility’s five-room layout and purpose-built construction footprint create a high fixed-cost base that cannot easily be downsized if patient volumes soften. This helps explain why the case emphasizes a going-concern transfer rather than a shutdown: the facility’s value depends on keeping clinical utilization intact, and the specialized equipment is more valuable as part of an operating center than in a piecemeal liquidation.

Provident’s nonprofit platform. Provident Resources Group was founded in 1999 and positions itself as a nonprofit borrower and owner that develops projects aligned with charitable missions such as healthcare and education. Public nonprofit records identify the organization as a 501(c)(3) entity with a healthcare-focused NTEE classification and an asset management footprint spanning multiple states. These factors are relevant because nonprofit sponsorship and tax-exempt financing were core to the project’s capital structure.

Provident Resources Group’s role. Provident Resources Group is the sole member of Georgia ProtonCare Center Inc. and is structured as a nonprofit organization. Provident’s mission includes developing and financing healthcare and education projects using tax-exempt financing tools, and its publicly available materials describe a portfolio of essential community projects across multiple states. The organization’s nonprofit status is reflected in public tax filings, and its mission areas include healthcare, higher education, and affordable housing.

Nonprofit sponsor context. Provident’s nonprofit model enables access to tax-exempt bond markets that provide lower-cost financing relative to taxable debt. That structure can support large-scale healthcare infrastructure but can also produce capital stacks that are difficult to service if operating cash flow does not reach projected levels. In the Georgia ProtonCare Center case, the capital structure and cash flow mismatch described in court filings underscore the inherent risk in bond-financing specialty healthcare facilities.

Clinical partner alignment. Emory’s role as clinical partner has been central since the facility’s opening. The integration of a nonprofit owner, a bond-financed capital stack, and a major academic medical system reflects a common structure for capital-intensive healthcare assets. The stalking horse bid indicates that the clinical partner is positioned to assume ownership while maintaining operational continuity.

Proton Therapy Market Context

Sector-wide financial stress. National coverage has highlighted financial strain at proton therapy centers and questioned the sustainability of capital-intensive single-asset facilities with long ramp-up periods. sector stress

Clinical economics and reimbursement. Academic reviews note ongoing debates about cost-effectiveness and reimbursement policy for proton therapy, which can affect patient volume and cash flow at specialized centers. The Georgia ProtonCare Center case adds another data point in a sector where revenue projections and debt service capacity can diverge. clinical controversy

Local market relevance. Despite broader sector stress, the Georgia center remains a key component of Emory’s oncology platform. The debtor’s proposed sale aims to preserve this capacity while reorganizing the capital structure, rather than shutting down or liquidating the facility.

Case Timeline and Next Milestones

Key procedural events. The early docket reflects a classic first-day package and a front-loaded sale calendar. The petition and first-day motions were filed on January 22, 2026, followed by a scheduled first-day hearing on January 26. Interim orders covering cash management, utilities, insurance, redaction, and patient confidentiality were entered on January 27, and a final hearing on interim relief was scheduled for February 13. The sale process timeline includes a March 4 letter-of-intent deadline, an April 17 bid deadline, an April 20 auction, and an April 23–24 sale hearing.

Operational orders. The interim cash management order allows the debtor to continue using existing bank accounts and cash management systems under court oversight. The utilities and insurance orders authorize payment of ongoing service providers and continuation of existing policies, a critical element for a healthcare facility with substantial equipment and patient-facing operations. The redaction order and patient confidentiality procedures establish a framework for handling protected health information in court filings and service lists.

Near-term focus. The debtor’s near-term work centers on executing the sale timeline while maintaining clinical operations and adhering to cash collateral reporting. The court’s interim orders provide a framework for continuing operations and protecting patient information, while the bid procedures motion and sale process set the path toward a court-approved transaction. The case’s pace suggests that creditor negotiations and sale diligence will remain the key drivers of the bankruptcy process over the next several months.

Frequently Asked Questions

Why did Georgia ProtonCare Center Inc. file for chapter 11?

The First Day Declaration describes a cash flow shortfall driven by reimbursement rate challenges, inflationary cost pressures, and a debt service burden tied to the center's tax-exempt bond financing. The debtor pursued chapter 11 to run a court-supervised sale process that could preserve patient care and maximize value for bondholders and other stakeholders.

When did Georgia ProtonCare Center Inc. file for chapter 11?

The debtor filed chapter 11 petitions on January 22, 2026 in the Northern District of Georgia.

What is the case number and court?

The case is pending in the U.S. Bankruptcy Court for the Northern District of Georgia (Atlanta Division) under Case No. 26-50882-JWC.

Is there a DIP financing or cash collateral order?

The debtor is using cash collateral under a court-supervised budget and adequate protection framework tied to bond trustee collateral. The initial relief is structured around interim orders and a proposed final cash collateral order with reporting and milestone requirements.

What is the expected timeline for the sale process?

The proposed sale timeline targets a letter-of-intent deadline in early March 2026, a bid deadline in mid-April, an auction shortly after, and a sale hearing in late April 2026, with an expedited path for the stalking horse if no qualified bids emerge.

Who is the stalking horse bidder?

Emory University Hospital Midtown is the stalking horse bidder under a proposed $110 million asset purchase agreement that would transfer the proton therapy facility and related assets while maintaining clinical operations.

What assets are included in the proposed sale?

The proposed asset sale includes the facility’s real estate, proton therapy equipment, patient and business records, operating permits, and key contracts, along with accounts receivable up to a defined cash cap. The structure is intended to deliver a turnkey operating platform to a buyer while keeping clinical services uninterrupted.

How much bond debt is outstanding?

Court filings list roughly $242.7 million of senior bond principal and about $207.5 million of subordinate bond principal, plus accrued and unpaid interest. Reporting on the case places total outstanding tax-exempt bond debt at roughly $550 million.

How is the facility tied to Emory and Winship?

The center provides clinical care through Emory Healthcare and The Emory Clinic, and it operates within the broader oncology ecosystem anchored by the Winship Cancer Institute, which holds NCI-designated comprehensive cancer center status.

Who is the claims agent for Georgia ProtonCare Center Inc.?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more restructuring updates on the ElevenFlo blog.