Risk of Breaching Financial Covenants on Borrowings
First written in FY2019. 1 of 5 entries say "Materialised", first in FY2020. Latest entry: FY2023-Q2.
Caica Digital moved to the "Worse" side of this theme in 2021, 4 years before the typical company in this theme (2025).
44 other companies' latest entry also says "Restated".
- FY2023-Q2RestatedAnnual report
「With respect to the syndicated loan agreement entered into with the group's lending financial institutions, the group repaid the full amount on 10 February 2023. Accordingly, the risk described in "(13) Financial Covenants" in the annual securities report for the previous consolidated fiscal year no longer exists.」
The statement that repayment of the syndicated loan in full eliminated the risk relating to the financial covenants has continued to be included for the current quarter. - FY2023-Q1DroppedAnnual report
「With respect to the syndicated loan agreement entered into with the group's lending financial institutions, the group repaid the full amount on 10 February 2023. Accordingly, the risk described in "(13) Financial Covenants" in the annual securities report for the previous consolidated fiscal year no longer exists.」
The company states that repayment of the syndicated loan in full eliminated the risk relating to the financial covenants. - FY2021WorsenedAnnual report
「The group has been unable to avoid a situation in which its consolidated subsidiary is in breach of the financial covenants in its syndicated loan agreement with its principal lending institution, following ordinary losses for 3 consecutive fiscal years during the current consolidated fiscal year. However, because the group maintains close relationships with its banks, it expects to continue receiving ongoing support from them.」
The breach of the financial covenants has worsened from two consecutive periods to a condition involving ordinary losses for three consecutive periods, and the company remains unable to avoid the breach. However, the company has obtained a deferral from its financial institutions of the exercise of their right to declare acceleration of its obligations. - FY2020MaterialisedAnnual report
「Because the group recorded ordinary losses for 2 consecutive fiscal years, its consolidated subsidiary breached the financial covenants in the syndicated loan agreement with its principal lending institution during the current consolidated fiscal year. However, after discussions with the financial institution, the consolidated subsidiary obtained its agreement to defer exercise of the right to declare the loan immediately due and payable in connection with the breach of the financial covenants.」
A breach of the financial covenants actually occurred as a result of ordinary losses for 2 consecutive fiscal years, and the company obtained from the financial institution a deferral of exercise of the right to declare the loan immediately due and payable. - FY2019First statedAnnual report
「The syndicated loan agreement among the company's borrowings, with an outstanding balance of ¥2,368.6 million at the end of the current consolidated fiscal year, contains financial covenants requiring net assets and ordinary income in each fiscal year to remain above specified amounts. A breach could result in the loss of the benefit of time on the debt and otherwise affect the group's operating results and financial condition.」
Financial covenants relating to net assets and ordinary income have been attached to the syndicated loan, and the risk of losing the benefit of time on the debt in the event of a breach has been newly disclosed.