Breach of Financial Covenants in Loan Agreements
First written in FY2021. 3 of 6 entries say "Mitigated", first in FY2022. Latest entry: FY2025.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「As of the filing date, compliance with the financial covenants was appropriately managed, and because we operated to consistently satisfy the required standards, we recognize the risk of breaching these covenants as minimal.」
The company continues to state that compliance with financial covenants is appropriately managed and the breach risk is minimal. - FY2024MitigatedAnnual report
「As of the filing date, compliance with the financial covenants was appropriately managed, and because we operated to consistently satisfy the required standards, we recognize the current risk of breaching these covenants as minimal.」
While reiterating the breach at the previous fiscal year-end, the company states that compliance is being appropriately managed as of the filing date and that the current breach risk is minimal. - FY2024-Q1RestatedAnnual report
「Although we were in breach of clause (4) at the end of the previous consolidated fiscal year, after discussions with the relevant financial institutions regarding our financial condition and funding plan, we obtained their consent not to exercise their right to declare a loss of the benefit of time.」
The breach of the debt capacity ratio covenant at the end of the previous consolidated fiscal year and the consent obtained from financial institutions continue to be disclosed. - FY2023MaterialisedAnnual report
「Although we were in breach of clause (4) at the end of the current consolidated fiscal year, after discussions with the relevant financial institutions regarding our financial condition and funding plan, we obtained their consent not to exercise their right to declare a loss of the benefit of time.」
A breach of the financial covenant requiring a debt capacity ratio of no more than 150% actually occurred. Although financial institutions agreed not to exercise their right to declare a loss of the benefit of time, the company disclosed the risks of higher interest rates and loss of the benefit of time if a further breach occurs. - FY2022MitigatedAnnual report
「Compliance with the financial covenants is appropriately managed, and because we operate to consistently satisfy the required standards, we recognize the current risk of breaching these covenants as minimal.」
Compliance management and safety margins are disclosed, and the current breach risk is assessed as minimal. - FY2021First statedAnnual report
「As of the filing date, our group's operating results and financial condition had a substantial safety margin relative to the required levels under these financial covenants.」
Potential risks include higher interest rates and loss of the benefit of time from a breach. Current safety margins and compliance monitoring are disclosed.