Relevant Document:Notice
Bond trustee UMB Bank, at the direction of majority bondholders, has agreed to disburse $3.1 million to Georgia ProtonCare Center from the “Start-Up Expense Fund” established under the bond indenture, leaving $4 million remaining, according to a notice posted to EMMA by UMB Bank today.
Georgia Proton initially requested a $3.4 million disbursement, but the trustee “did not believe it appropriate to immediately disburse the entirety of the funds requested without a more formal agreement” because of Georgia Proton’s
pending default.
To that end, the trustee and Georgia Proton entered into a funding agreement, effective April 27 for an initial 13-week period. Under the agreement, disbursements from the Start-Up Expense Fund must comply with a 13-week cash flow budget, subject to permitted variances, which has been approved by the bond trustee and majority bondholders, according to the notice. Georgia Proton must also certify that there are no other funds available to it, the notice states.
The notice explains that, under the indenture, Start-Up Expense Funds may be disbursed to pay operating and maintenance expenses and debt service upon written request by the company. Upon an event of default, however, the funds may be used to pay debt service and the trustee’s fees and expenses.