Loan & DebtJul 28, 2026, 04:27 PM
American Shared Hospital Services Secures Forbearance, $2M Loan
AI Summary
American Shared Hospital Services entered a Third Amendment to its Credit Agreement and Forbearance Agreement with Fifth Third Bank, National Association, due to existing Events of Default. The bank agreed to forbear from exercising certain rights until June 30, 2027, in exchange for significant obligations including monthly prepayments, principal payments, and a requirement to pursue asset sales. Additionally, the company secured a $2,000,000 loan and issued warrants to RCS/TIG Holdings LLC, an entity owned by a company director.
Key Highlights
- Lender agreed to forbear from exercising rights on existing defaults until June 30, 2027.
- Company must prepay obligations monthly by excess cash flow over $5,000,000.
- Company must make quarterly principal payments of $125,000 on Term Loan and $75,000 on Delayed Draw Term Loan.
- Company is required to pursue a sale of all or a portion of its assets.
- Secured a $2,000,000 loan from RCS/TIG Holdings LLC, an entity owned by a company director.
- Issued warrants for 220,000 shares of Common Stock to the subordinated lender.
Price Impact
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