ProCure

Summary

Financial Advisor

New York, NY

Procure Treatment Centers specialize in delivering advanced proton therapy for cancer treatment. Proton therapy is a highly precise form of radiation therapy that targets tumors while minimizing damage to surrounding healthy tissue, making it particularly effective for complex or hard-to-treat cancers.

Carl Marks Advisors (CMA) was engaged by the Senior Lenders to provide restructuring and consulting services for ProCure Treatment Centers. The engagement focused on addressing challenges related to high construction costs, extended ramp-up periods, significant volume requirements, and a difficult reimbursement environment due to limited peer-reviewed clinical trials.

CMA assessed the cash flows, patient mix, and contracts of ProCure’s initial center to determine its viability timeline. CMA also developed a consolidated cash flow model for the entire organization, which formed the foundation for restructuring construction financing across centers. This enabled the sale of one center to a clinical partner, resulting in full repayment of its construction financing.

Key Challenges

Complex Capital Structure

Low Liquidity

Reimbursement / Payor Challenges

Unproven Technology

Engagement Highlights

Provides restructuring and consulting services to the Senior Lenders, including a review of ProCure’s business plan, financial projections and future liquidity.
Phase I: Operational and financial assessment of the Company’s initial center, developing an understanding of its cash flows, patient mix, and provider contracts in order to identify the timeline needed for the Center to be viable.
Phase II: Developed a consolidated model to evaluate the cash flow requirements of the entire ProCure organization which served as the basis for developing a restructure of each of the Centers construction financing to allow time for the facilities to reach sufficient volumes to cover debt service.
Phase III: Assisted the Senior Lenders in negotiating an acceptable restructure of the construction financing that facilitated the sale of a Center to a Clinical Partner, which ultimately lead to the construction financing being repaid in full.
Phase IV: Continue to advise the lender as each of the other centers continue to strive to reach patient volumes sufficient to service existing debt.

ProCure

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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