aibioAmerican Shared Hospital Services signs forbearance with Fifth Third Bank
Tickers AMS
A third amendment to the credit agreement with Fifth Third Bank, National Association, sets a standstill period that runs to June 30, 2027.
Key facts
- Company
- AMERICAN SHARED HOSPITAL SERVICES (NYSE: AMS)
- News type
- Debt Financing
- Primary source
- American Shared Hospital Services 8-K (2026-07-28)
American Shared Hospital Services, trading on the NYSE American as AMS, disclosed in a Form 8-K that it and its subsidiaries entered into a third amendment to their credit agreement with Fifth Third Bank, National Association, as of July 22, 2026. The amendment is also a forbearance agreement. The lender agreed to hold back from exercising its remedies on the defaults the borrowers acknowledged, for a standstill period that ends on June 30, 2027 at 5:00 p.m. prevailing Eastern time, unless an earlier termination event occurs.
The parties and the existing credit agreement
The borrowers are American Shared Hospital Services (ASHS), PBRT Orlando, LLC and GK Financing, LLC, an indirect subsidiary of ASHS. American Shared Radiosurgery Services is also a loan party. Fifth Third Bank, National Association is the lender.
The existing credit agreement is dated April 9, 2021, and was amended in January 2024 and December 2024. The borrowers asked the lender to amend the agreement in certain respects and to forbear from the immediate exercise of remedies on what the amendment calls the Designated Events of Default. The amendment refers to a Schedule I that describes those defaults. The borrowers acknowledge that the Designated Events of Default currently exist and cannot be cured. The text reviewed does not set out what those defaults are, because the description sits in Schedule I, so readers cannot tell from it whether they involve missed payments or broken financial covenants.
The outstanding loans
After giving effect to the amendment, the borrowers confirm that the outstanding principal amount of term loans is $4,687,500.00, delayed draw term loans is $2,387,500.00, supplemental term loans is $1,935,000.00, second supplemental term loans is $6,416,666.69, and revolving loans is $0. The borrowers also agree that they have no claim or defense of any kind, by way of offset or otherwise, to the payment or performance of the obligations.
The standstill terms
The standstill period begins on the third amendment effective date and ends on the earlier of June 30, 2027 at 5:00 p.m. prevailing Eastern time or a termination event. The filing lists four termination events. They are any new default, a materially incorrect representation, any noncompliance with the amendment or credit agreement, and a material adverse effect as the lender determines in good faith, other than one caused by the Designated Events of Default.
During the standstill period the borrowers must pay in cash all principal and all interest due on the loans and other obligations, as and when the credit agreement requires. The lender can exercise its rights and remedies after a termination event, and at the end of the standstill period. The filing says the amendment does not waive any Designated Event of Default or any other event of default. It also says the lender has made no commitment for financing beyond what the amendment provides, and that the lender has no obligation to consider any further consent, waiver or amendment.
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. The sources give no cash figure for the end of 2025 or for any date since, so the company's ability to pay the loans in cash through the standstill cannot be judged from them. The company swung from net income to a net loss, and the filing offers no plan to repay or refinance the loans before June 30, 2027.
What comes next
The standstill period runs to June 30, 2027 unless a termination event ends it earlier. The relief is temporary and conditional, and the lender can act on the defaults once it ends. The exhibit names Fifth Third Bank as the lender and no advisor.