New Delaware Chapter 11 Filing – California Proton Treatment Center, LLC (Case No. 17-10477 (LSS))
San Diego-based California Proton Treatment Center, LLC, a provider of proton radiation treatment services to patients with cancerous solid tumors, has filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the District of Delaware (Case No. 17-10477). The petition lists between $100 million and $500 million in both assets and liabilities. According to the First Day Declaration, the Debtor has not operated on a “profitable or even a break-even basis” since its opening in 2014 and is currently facing an “acute shortage of operating capital.” Unable to obtain further financing, the Debtor intends to sell substantially all of its assets through a § 363 sale, but does not have a pre-arranged stalking horse. The Debtor has secured first priority and priming postpetition financing in the form of a multiple-draw term loan facility. The case has been assigned to the Honorable Laurie Selber Silverstein.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.