DefaultJun 4, 2026, 04:12 PM
American Shared Hospital Services Defaults on Credit Agreement
AI Summary
American Shared Hospital Services received a notice from Fifth Third Bank on May 29, 2026, asserting multiple Events of Default under its Credit Agreement. These defaults include failing to maintain a minimum cash covenant of $5 million, non-compliance with financial ratios, late delivery of a compliance certificate, and failure to pay term loan obligations. As a result, the Lender has increased the interest rate on Advances by 2% per annum and reserves the right to accelerate all payment obligations, which the company states it cannot satisfy.
Key Highlights
- Received notice on May 29, 2026, from Fifth Third Bank regarding multiple Events of Default under its Credit Agreement.
- Failed to maintain unrestricted cash and Cash Equivalents of at least $5,000,000 as of September 30, 2025.
- Failed to comply with Fixed Charge Coverage Ratio, Total Funded Debt Ratio, and Minimum Cash Covenant as of December 31, 2025.
- Failed to deliver a Compliance Certificate for the quarter ended March 31, 2026, within 45 days.
- Failed to pay Term Loan Obligations and Delayed Draw Term Loan Obligations on April 9, 2026.
- Lender increased interest on Advances by 2% per annum (Default Rate) effective from the earliest default.
- Company states it would not have sufficient cash to satisfy accelerated payment obligations if the Lender exercises its right.
Price Impact
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