Georgia ProtonCare Center, Inc., which operates the only proton therapy cancer treatment facility in Georgia, filed for Chapter 11 bankruptcy protection on January 22, 2026, weighed down by approximately $550 million in debt obligations against annual revenues of just over $40 million. The Atlanta-based nonprofit has negotiated a stalking horse asset purchase agreement with Emory University to facilitate a going-concern sale aimed at maintaining uninterrupted cancer treatment for more than 1,000 patients who rely on the specialized facility each year.
The bankruptcy filing, submitted to the United States Bankruptcy Court for the Northern District of Georgia, Atlanta Division under case number 26-50882-JWC, represents a critical juncture for one of only 47 operating proton therapy centers in the United States. Chief Restructuring Officer Darryl Myers of BDO Consulting Group described the facility's predicament in a declaration supporting the petition: despite being among the busiest proton therapy centers in the country, revenues from Medicare, Medicaid, commercial insurance, and private pay have proven insufficient to service the massive debt load.
Proton therapy delivers precisely targeted radiation treatment for tumors requiring exceptional accuracy, reducing side effects and long-term damage compared to conventional radiation. The technology is particularly valuable for treating pediatric cancers, brain and spine tumors, and cases where radiation must avoid vital organs. The Georgia facility treats various cancer types including breast, lung, prostate, and abdominal cancers, making its continued operation a matter of significant public health concern.
The debtor's financial performance underscores the severity of its distress. In fiscal year 2024, the facility generated $43.9 million in total operating revenue with adjusted EBITDA of $6.5 million, but posted a net loss of $31.9 million. Through November of fiscal 2025, revenues declined to $39.6 million with adjusted EBITDA of just $2.5 million and a net loss of $33.7 million. Against this backdrop, the company faces debt service requirements on bonds totaling hundreds of millions of dollars, creating an untenable financial structure.
The facility's troubled history began in 2010 when a private investor group formed Georgia Proton Treatment Center, LLC to develop the center. Construction was suspended in 2015 due to funding shortfalls, leaving a partially built and completely inoperable facility. Provident Resources Group, Inc., a nonprofit Georgia corporation, acquired the assets in July 2017 and completed construction. The Atlanta Development Authority issued bonds totaling over $368 million that same month to finance the project, with U.S. Bank serving as trustee. The first patient received treatment in December 2018.
The capital structure consists of several tranches of bonds secured by substantially all the debtor's assets. Senior bonds carry approximately $242.7 million in outstanding principal plus $67.6 million in accrued unpaid interest. Subordinated bonds account for roughly $207.5 million in principal and $32.4 million in accrued interest, with a face value at maturity of $398.2 million. An additional $29.5 million in unsecured obligations to vendors and trade creditors rounds out the debt picture. UMB Bank, National Association serves as bond trustee, having succeeded U.S. Bank in January 2021.
Emory Healthcare and The Emory Clinic occupy a unique position in both the debtor's current operations and its future. Under an amended management agreement dating to the facility's original development, Emory provides substantially all clinical care, patient services, and day-to-day operational management. The debtor employs only one person directly—a staff accountant—with all other personnel working at the facility employed by Emory. The healthcare system is owed approximately $6.8 million for actual costs of services rendered, plus an additional $22.3 million in subordinated unpaid management fees that have accrued because insufficient funds were available under the bond indenture's payment waterfall.
Now Emory University, acting through Emory University Hospital of Midtown, has negotiated to serve as stalking horse bidder for the facility. Myers described the agreement as the product of extensive due diligence and arm's-length negotiations focused on maintaining uninterrupted patient treatment while preserving and monetizing the debtor's assets. The declaration indicates that a majority of senior bondholders, represented by the bond trustee and its advisors, support the proposed going-concern sale subject to an overbid process that would allow competing bids.
Myers cited ongoing reimbursement rate disputes with the Centers for Medicare & Medicaid Services and commercial insurance payors as a primary factor in the facility's inability to generate sufficient revenue. While the debtor has implemented cost reduction initiatives over recent years, savings have been largely offset by inflationary pressures in operating expenses. Revenue sources have simply not provided adequate income to service the significant debt obligations incurred during the facility's construction and development.
The debtor filed numerous first-day motions seeking court permission to maintain normal business operations during the bankruptcy case. These include requests to use cash collateral with adequate protection for secured creditors, continue the existing cash management system, maintain insurance policies, and implement procedures protecting confidential patient information. The company also moved to establish utility assurance procedures and requested authorization to honor certain prepetition obligations necessary for uninterrupted operations.
Separately, the debtor filed a comprehensive motion seeking approval of bid procedures for the asset sale, including authorization to enter into the stalking horse agreement with Emory, approval of bid protections, scheduling of an auction and sale hearing, and procedures for assuming and assigning executory contracts and leases. The filing indicates the company will also seek court approval to employ Polsinelli PC as legal counsel, BDO as financial advisor and to formally approve Myers' appointment as chief restructuring officer, and GHB SOLIC Holdco, LLC doing business as SOLIC Capital Advisors as investment banker.
Provident Resources Group, the debtor's sole member and parent organization, provides administrative and support services under a separate management agreement. Provident receives an annual base fee currently set at approximately $380,000, increasing at three percent annually, with half paid currently and half accruing as subordinated debt. The parent organization is owed approximately $7.2 million in subordinated asset management fee obligations.
The case is being heard in the Atlanta Division of the United States Bankruptcy Court for the Northern District of Georgia under case number 26-50882-JWC before Judge JWC. Polsinelli PC represents the debtor as bankruptcy counsel. The proceeding will test whether a market exists for specialized medical facilities burdened by debt far exceeding their revenue-generating capacity, and whether the proposed sale structure can preserve vital cancer treatment services while providing meaningful recovery to the diverse creditor constituencies.
For Georgia's cancer patients, particularly those requiring the precision of proton therapy, the bankruptcy represents both a crisis and potentially a path to more stable ownership. The debtor's declaration emphasizes that maintaining continuity of care remains the paramount concern throughout the sale process. Whether the contemplated transaction with Emory or a potentially higher competing offer can achieve both the financial and healthcare objectives will become clearer as the case proceeds through the bid and auction process in the coming weeks.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 18 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.