---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-23-033243"
form_type: "8-K"
ticker: null
cik: "0000874710"
company_name: "ALLIED HEALTHCARE PRODUCTS INC"
filed_at: "2023-03-16T23:59:59+00:00"
generated_at: "2026-06-18T01:23:45.565976+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# Allied Healthcare defaults, gets forbearance until Mar 27; retains 72 employees after WARN cuts

## Summary
- Entered Ninth Amendment with Sterling Commercial Credit, increasing borrowing base to $2.5M, extending maturity to Sept 9, 2023.
- Interest rate increased to prime + 6.5%; accounts receivable fee 0.6%; paid $50,000 amendment fee.
- Acknowledged multiple defaults: material adverse effect from WARN notice, CEO/VP resignations (change of control), failure to engage stalking horse bidder by Feb 19.
- Sterling granted forbearance until earlier of March 27, 2023 or new default; loan not accelerated.
- Reduction in force: retained 72 employees (37 union); asserts $17.5M multiemployer pension withdrawal liability not triggered.

## SEC filing metadata
- accession: 0001104659-23-033243
- form_type: 8-K
- cik: 0000874710
- company_name: ALLIED HEALTHCARE PRODUCTS INC
- filed_at: 2023-03-16T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 1.01, 2.04, 2.05, 2.06, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/874710/000110465923033243/0001104659-23-033243-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/874710/000110465923033243/tm239758d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-23-033243
- JSON: https://secwatch.observer/filing/0001104659-23-033243.json
- Plain text: https://secwatch.observer/filing/0001104659-23-033243.txt

## Key facts
- Debt Financings
  ALLIED HEALTHCARE PRODUCTS INC amended credit facility of $2,500,000.00 with Sterling Commercial Credit, LLC at 6.5% over the prime rate maturing September 9, 2023.
  - Instrument: credit facility
  - Principal: $2,500,000.00
  - Counterparty: Sterling Commercial Credit, LLC
  - Rate: 6.5% over the prime rate
  - Maturity: September 9, 2023
  - Event: amendment
  source text: to the Credit Agreement with Sterling. The 9 th Amendment amends the Credit Agreement as follows: - The maximum availability under the Credit Agreement has been increased to $2,500,000.00 and the Company may now include inventory in the borrowing base; - The interest rate on outstanding amounts was amended to 6.5% over the prime rate, as defined in the Credit
  evidence_url: https://www.sec.gov/Archives/edgar/data/874710/000110465923033243/0001104659-23-033243-index.htm
- Material Agreements
  ALLIED HEALTHCARE PRODUCTS INC amended Ninth Amendment to Loan and Security Agreement with Sterling Commercial Credit, LLC valued at Maximum availability increased to $2,500,000; interest rate amended to 6.5% over prime; accounts rec (effective 2023-03-14).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Sterling Commercial Credit, LLC
  - Value: Maximum availability increased to $2,500,000; interest rate amended to 6.5% over prime; accounts rec
  - Effective: 2023-03-14
  source text: On March 14, 2023, Summit Financial Resources, LLC ("Summit") sold and assigned its interest in the existing Loan and Security Agreement, dated February 27, 2017, by and between Summit and Allied Healthcare Products, Inc. (the "Company") as previously amended (the "Credit Agreement") to Sterling Commercial Credit, LLC ("Sterling"). Simultaneously with the assignment of the Credit Agreement from Summit to Sterling, the Company entered into a 9 th Amendment to the Credit Agreement with Sterling.
  evidence_url: https://www.sec.gov/Archives/edgar/data/874710/000110465923033243/0001104659-23-033243-index.htm
- Restructurings & Charges
  ALLIED HEALTHCARE PRODUCTS INC announced a restructuring with charges of $17.5 million affecting St. Louis, Missouri manufacturing facilities and administrative offices (reduction in force that will impact employees of its St. Louis, Missouri manufacturing facilities and certain employees).
  - Type: restructuring
  - Charge: $17.5 million
  - Affected area: St. Louis, Missouri manufacturing facilities and administrative offices
  - Headcount: reduction in force that will impact employees of its St. Louis, Missouri manufacturing facilities and certain employees
  source text: union employees, which would have triggered withdrawal liabilities owed to certain multiemployer pension plans which were most recently estimated by such pension plans to be $17.5 million. On March 16, 2023, the Company announced that its restructuring efforts have resulted in the retention of 72 employees at its St. Louis headquarters location, including 37 union
  evidence_url: https://www.sec.gov/Archives/edgar/data/874710/000110465923033243/0001104659-23-033243-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.