American Shared Hospital Services (AMS) faces lender default notice and revolver suspension

Rhea-AI Filing Summary

American Shared Hospital Services reported that Fifth Third Bank sent a notice asserting an Event of Default under the company’s Credit Agreement. The lender claims the default arose because the borrowers did not maintain at least $5,000,000 in unrestricted cash and cash equivalents for the quarter ended September 30, 2025.

Under the notice, Fifth Third has suspended the $7,000,000 revolving loan commitment for additional advances and reserved its rights to accelerate all obligations and take action against collateral. The bank also demanded payment of certain attorney’s fees by December 15, 2025. As of this report, the obligations have not been accelerated. The company is evaluating the impact on its financial statements, liquidity, other credit arrangements, and is in discussions with the lender about a waiver and amendment, with no assurance of a successful outcome.

Positive

• None.

Negative

• Event of Default asserted and liquidity source suspended: Fifth Third Bank has asserted an Event of Default under the Credit Agreement, suspended the $7,000,000 revolving loan commitment for additional advances, and reserved rights to accelerate obligations and proceed against collateral.
• Covenant breach tied to minimum cash balance: The default is based on not maintaining at least $5,000,000 of unrestricted cash and cash equivalents for the quarter ended September 30, 2025, which the company is evaluating for potential impacts on its financial statements and other credit arrangements.

Insights

Credit and capital structure analyst

Lender’s default notice and revolver suspension raise liquidity and financing risk.

The notice from Fifth Third Bank asserts an Event of Default under American Shared Hospital Services’ Credit Agreement, tied to a covenant requiring at least $5,000,000 of unrestricted cash and cash equivalents for the quarter ended September 30, 2025. This is a core maintenance covenant, so an asserted breach directly affects access to bank financing.

The lender has suspended the $7,000,000 revolving loan commitment for new advances and formally reserved rights to accelerate all obligations and act against collateral. While the bank has not yet accelerated the debt, the company acknowledges it is assessing potential effects on its financial statements, liquidity, and other credit facilities, indicating that knock-on impacts are possible.

The company is in discussions with Fifth Third regarding a waiver and amendment to the Credit Agreement, but explicitly notes there can be no assurances about the outcome. Future updates in the company’s filings regarding any waiver, amendment, or acceleration following the December 10, 2025 notice would be important to understand how this credit issue evolves.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): December 10, 2025

AMERICAN SHARED HOSPITAL SERVICES

(Exact Name of Registrant as Specified in Its Charter)

California		1-08789		94-2918118
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)
601 Montgomery Street, Suite 850 San Francisco, California				94111
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s telephone number, including area code: (415) 788-5300 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
American Shared Hospital Services Common Stock, No Par Value		AMS		NYSE AMERICAN

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          ☐

Item 8.01   Other Events.

American Shared Hospital Services (the “Company”) is a party to that certain Credit Agreement, dated as of April 9, 2021 (as amended from time to time, the “Credit Agreement”), between Fifth Third Bank, National Association (the “Lender”), on the one hand, and the Company, PBRT Orlando, LLC (“PBRT”), GK Financing, LLC (“GKF,” together with the Company and PBRT, the “Borrowers”), and American Shared Radiosurgery Services (together with the Borrowers, the “Loan Parties”), on the other hand. Capitalized terms that are used but not defined in this Current Report on Form 8-K (this “Form 8-K”) have the meanings given to them in the Credit Agreement. Pursuant to the Credit Agreement, the Lender made a Revolving Loan Commitment to make Revolving Loan Advances to the Borrowers under a $7,000,000 revolving loan of credit in addition to lending the Borrowers certain supplemental term loans.

On December 10, 2025, the Loan Parties received a notice from the Lender (i) asserting that an Event of Default has occurred under the Credit Agreement due to the Borrowers’ failure to maintain minimum unrestricted cash and Cash Equivalents of at least an aggregate of $5,000,000 for the fiscal quarter ending September 30, 2025 (the “Specified Event of Default”), and (ii) informing the Loan Parties that the Lender has suspended the Revolving Loan Commitment with respect to additional Revolving Loan Advances (the “Notice”). In addition to confirming that the Lender has not waived the Specified Event of Default or any other Event of Default, the Notice reserves all of the Lender’s other rights, powers, privileges, and remedies under the Credit Agreement, the other Loan Documents, applicable law, and otherwise with respect to any Event of Default, including but not limited to the Lender’s right to accelerate the Borrowers’ payment obligations in respect of all Advances and other Obligations owing under the Credit Agreement and to repossess, liquidate, or take any other action with respect to any or all Collateral. Furthermore, the Notice serves as a demand for certain attorney’s fees incurred by the Lender to be paid by the Loan Parties not later than December 15, 2025.

As of the date of this Form 8-K, the Lender has not accelerated the obligations of the Loan Parties under the Credit Agreement or other Loan Documents. The Loan Parties are reviewing and evaluating the Notice and the matters described therein, including any impact on the financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025. The Loan Parties are also evaluating the implications of the asserted Specified Event of Default and the suspension of the Revolving Loan Commitment on the Borrowers’ liquidity, financial conditions, and operations, and whether it could adversely affect the Loan Parties under their other credit arrangements and facilities. The Company is currently in discussions with Fifth Third regarding a waiver and an amendment to the Credit Agreement. However, there can be no assurances regarding the outcome of such discussions.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AMERICAN SHARED HOSPITAL SERVICES (Registrant)
Dated: December 16, 2025	By:	/s/ Raymond C. Stachowiak
		Raymond C. Stachowiak
		Executive Chairman of the Board

FAQ

What did American Shared Hospital Services (AMS) disclose in this 8-K?

AMS disclosed that its lender, Fifth Third Bank, sent a notice asserting an Event of Default under the company’s Credit Agreement and suspending the revolving credit commitment for additional advances.

What caused the asserted Event of Default under AMS’s Credit Agreement?

The notice states that an Event of Default occurred because the borrowers failed to maintain minimum unrestricted cash and cash equivalents of at least $5,000,000 for the fiscal quarter ended September 30, 2025.

What immediate actions did Fifth Third Bank take against AMS?

Fifth Third Bank suspended the revolving loan commitment for additional Revolving Loan Advances, reserved all rights and remedies including possible acceleration and action against collateral, and demanded payment of certain attorney’s fees by December 15, 2025.

Has AMS’s lender accelerated the company’s debt obligations?

As of the date of the report, the lender has not accelerated the Loan Parties’ obligations under the Credit Agreement or other loan documents, although it has reserved the right to do so.

How could the asserted Event of Default affect AMS’s financial position?

AMS states it is evaluating how the asserted default and suspension of the revolving commitment could affect its liquidity, financial condition, operations, and whether there could be adverse effects under other credit arrangements and facilities.

Is American Shared Hospital Services seeking a resolution with its lender?

Yes. The company reports it is in discussions with Fifth Third Bank regarding a waiver and an amendment to the Credit Agreement but notes there can be no assurances about the outcome of these discussions.