American Shared struggles to service debt

May 8, 1991

Imaging services provider American Shared Hospital Services ofSan Francisco failed to make the semiannual interest payment thatwas due last month on senior subordinated notes. The firm is discussingways to restructure the debt with its investment banker.

Imaging services provider American Shared Hospital Services ofSan Francisco failed to make the semiannual interest payment thatwas due last month on senior subordinated notes. The firm is discussingways to restructure the debt with its investment banker. Earlierin April, ASHS repurchased $6 million in senior subordinated notesfrom two holders at a discount.

ASHS, which is predominantly a mobile medical imaging company,has a cash flow problem due to losses incurred over the last twoyears. The company is exploring other financing options apartfrom debt restructuring, including the sale of assets and possiblejoint ventures, according to the ASHS 1990 annual report, releasedlast month.

The firm's primary magnetic resonance imaging business is profitable.ASHS has been loosing money, however, with its computed tomography,ultrasound and nuclear medicine businesses, said Ernest A Bates,chairman.

ASHS lost $3.6 million in fiscal 1990 (end-December), comparedto $2.7 million in 1989. Revenues were $61.5 million last year,up 18% from $52.3 million in 1989.