8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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):      January 18, 2007

American Telecom Services, Inc.

(Exact name of Registrant as specified in its charter)

Delaware (State of incorporation) 1-32736 (Commission File No.) 77-0602480 (IRS Employer Identification No.)

2466 Peck Road

City of Industry, California 90601

(Address of principal executive offices)

Registrant’s telephone number:      (562) 908-1287

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:

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

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

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

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

Item 8.01. Other Events.

On January 18, 2007, we issued a press release announcing we have secured an asset-based financing facility from CIT Commercial Services, a unit of CIT Group Inc. A copy of the press release is being furnished as Exhibit 99.1 to this report and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a)Financial Statements of Businesses Acquired - None

(b)Pro Forma Financial Information - None

(c)Shell Company Transactions - None

(d)Exhibits:

Exhibit No.	Description
99.1	Press release issued by us on January 18, 2007

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.

Dated:    January 18, 2007

 

AMERICAN TELECOM SERVICES, INC.
By:	/s/ Edward James
	Name:   Edward James
	Title:     Chief Financial Officer

EX-99.1

EXHIBIT 99.1

American Telecom Services Secures Open-Ended Financing From CIT Commercial Services

Contact:	Bruce Hahn, CEO
	(310) 871-9904
	(404) 261-7466
	Bruce.Hahn@atsphone.com
Investor Contact:	Brett Maas, Principal
	Hayden Communications
	(646) 536-7331
	brett@haydenir.com
Media Relations:	Danielle Ross
	Comunicano, Inc
	(858) 314-2958
	dross@comunicano.com

FOR IMMEDIATE RELEASE

AMERICAN TELECOM SERVICES SECURES OPEN-ENDED

FINANCING FROM CIT COMMERCIAL SERVICES

City of Industry, California, January 18, 2007 - American Telecom Services, Inc. (AMEX: TES), a provider of converged communications solutions, today announced that it has secured an asset-based financing facility from CIT Commercial Services, a unit of CIT Group Inc. (NYSE: CIT) and a leading global provider of commercial and consumer finance solutions. This relationship with CIT strengthens ATS’ ability to expand retail channels and product lines in 2007, beyond its current base.

Management believes this open-ended credit line will be valuable financial support for the Company. This facility will be instrumental in supporting the continued development of American Telecom’s feature-rich DECT 6.0 cordless telecom products, expanding its telecom service offerings, the Company’s growth objectives in the foreseeable future and will allow the Company to increase the company’s ability to capture additional consumer demand for recurring service revenue as ATS continues to expand its retail distribution channels.

About American Telecom Services

American Telecom Services, a leading provider of converged communication solutions targeting traditional and internet phones bundled with telecom service offerings, currently offers Digital Clear™ Internet phone bundles powered by SunRocket and Lingo, Inc. (Voice-over-Internet-

Protocol or “VoIP”) and Pay N’ Talk™ prepaid residential long distance communications services powered by IDT Telecom. These services are bundled with ATS’ diverse line of custom-designed DECT 6.0 digital cordless multi-handset phones. ATS sells its phone/service bundles through major retailers under the “American Telecom”, “ATS”, Pay N’ Talk™ and Digital Clear™ brand names.

About CIT Commercial Services

CIT Commercial Services is one of the nation’s leading providers of factoring and financing to consumer products companies and is a division of CIT Group Inc. (NYSE: CIT), a leading consumer finance company with more that $74 billion in managed assets. CIT Commercial Services tailors financial solutions that help companies of all sizes increase sales, improve cash flow, reduce operating expenses and eliminate customer credit losses. It serves over 2,000 clients (vendors) ranging in size from $5 million to $1 billion in annual sales that sell to 330,000 customers nationwide. For more information, visit http://www.cit.com/main/financial-solutions/trade-finance/

Safe Harbor Statement

Any statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify those forward-looking statements by words such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of those words and some other comparable words. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those the Company anticipates. Factors that could cause actual results to differ from those contained in the forward-looking statement include, but are not limited to, those risks and uncertainties described in the Company's prospectus dated February 1, 2006 and the other reports and documents the Company files from time to time with the Securities and Exchange Commission. Statements included in this press release are based upon information known to the Company as of the date of this press release, and the Company assumes no obligation to (and expressly disclaims any such obligation to) publicly update or alter its forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.

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