--- title: "American Shared Hospital Services discloses lender default notice" url: "https://aibio.space/news/american-shared-hospital-services-discloses-lender-default-notice/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-05-29" section: "Distress" tickers: "NYSE:AMS" source: "https://www.sec.gov/Archives/edgar/data/744825/000143774926019561/asha20260603_8k.htm" summary: "Fifth Third Bank's May 29, 2026 notice cites four specified events of default under the credit agreement and raises the interest rate to the default rate." --- By the aibio.space news desk. Sources - [American Shared Hospital Services 8-K (2026-06-04)](https://www.sec.gov/Archives/edgar/data/744825/000143774926019561/asha20260603_8k.htm) - [American Shared Hospital Services financial data (SEC XBRL)](https://www.sec.gov/Archives/edgar/data/744825/000143774926010731/) [AMS](https://aibio.space/companies/american-shared-hospital-services/) 2026-05-29 # American Shared Hospital Services discloses lender default notice Tickers [AMS](https://aibio.space/companies/american-shared-hospital-services/) Fifth Third Bank's May 29, 2026 notice cites four specified events of default under the credit agreement and raises the interest rate to the default rate. ## Key facts - **Company**: AMERICAN SHARED HOSPITAL SERVICES (NYSE: AMS) - **News type**: Distress - **Primary source**: [American Shared Hospital Services 8-K (2026-06-04)](https://www.sec.gov/Archives/edgar/data/744825/000143774926019561/asha20260603_8k.htm) *Stone columns of a government building. Photo: The Building Envelope, CC0, via StockSnap. The picture shows the field, not the companies named.* American Shared Hospital Services, a California company trading on the NYSE American as AMS, reported in a Form 8-K filed June 4, 2026 that its lender sent a notice on May 29, 2026 asserting that events of default had occurred under the company's credit agreement with Fifth Third Bank, National Association. The lender said it had elected to increase the interest rate on advances to the default rate, and it reserved all of its other rights, including the right to accelerate the obligations. ## The defaults cited The notice lists four specified events of default. First, the borrowers failed to keep unrestricted cash and cash equivalents of at least $5,000,000, the minimum cash covenant, as of September 30, 2025. Second, they failed to comply with the fixed charge coverage ratio, the total funded debt ratio and the minimum cash covenant as of December 31, 2025. Third, they did not deliver a compliance certificate for the quarter ended March 31, 2026 within forty-five days after that quarter ended. Fourth, they did not pay in full the term loan obligations and the delayed draw term loan obligations on April 9, 2026. The filing calls these four the specified events of default. ## The default rate and the lender's rights The lender elected to increase interest on advances to the default rate, effective from and after the earliest of the specified events of default. The default rate adds two percent per annum to the applicable margin in effect for advances. The notice confirms that the lender has not waived the specified events of default or any other event of default. The lender reserved its rights, powers, privileges and remedies under the credit agreement, the other loan documents and applicable law. Those rights include accelerating the borrowers' payment obligations on all advances and other obligations, and repossessing, liquidating or taking other action against the collateral. The company states that if the lender were to accelerate all payment obligations, it would not have sufficient cash on hand to satisfy them. The 8-K says that as of its date the lender had not accelerated the obligations under the credit agreement or the other loan documents. ## The credit agreement and the parties The credit agreement is dated as of April 9, 2021, and as amended from time to time. It is between Fifth Third Bank, National Association, as lender, on one side, and the company, PBRT Orlando, LLC, GK Financing, LLC and American Shared Radiosurgery Services on the other. The company, PBRT Orlando and GK Financing are the borrowers, and American Shared Radiosurgery Services is a loan party together with the borrowers. ## Recent financial position The financial data in the company's annual report shows a net loss of $1.6 million for fiscal 2025, compared with net income of $2.2 million for fiscal 2024. Cash from operations was $3.1 million in 2025 and $167,000 in 2024. Year-end cash and cash equivalents were $11.0 million at the end of 2024, according to the 10-K filed March 31, 2026. ## What comes next The 8-K does not describe a plan to cure or waive the specified events of default, and it does not give a date for any further action by the lender. It states only that the lender has reserved its rights and has not yet accelerated the obligations as of the filing date. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story AMS AMERICAN SHARED HOSPITAL SERVICES NYSE ยท United States Open the starter desk ## More in Distress Distress ### [Mineralys takes ownership of lorundrostat patents but keeps Tanabe milestone debts](https://aibio.space/news/mineralys-takes-ownership-lorundrostat-patents-but-keeps-tanabe/) Oct 29, 2026 Distress ### [Bristol Myers Squibb drops Prothena's PRX019, ending up to $617.5 million in milestones](https://aibio.space/news/bristol-myers-squibb-drops-prothenas-prx019-ending-up-617-5-million/) Oct 29, 2026 Distress ### [LENZ Therapeutics reorganizes to cut 2027 operating expenses by more than 50%](https://aibio.space/news/lenz-therapeutics-reorganizes-cut-2027-operating-expenses-more-50/) Oct 28, 2026 --- Source page: https://aibio.space/news/american-shared-hospital-services-discloses-lender-default-notice/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "American Shared Hospital Services discloses lender default notice", 2026-05-29, https://aibio.space/news/american-shared-hospital-services-discloses-lender-default-notice/