Financial Restrictions Under Term Loan Covenants
First written in FY2017-Q2. 3 of 9 entries say "Reframed", first in FY2020-Q2. Latest entry: FY2026.
Ap Holdings moved to the "Worse" side of this theme in 2019, 6 years before the typical company in this theme (2025).
39 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The company became technically insolvent in the previous consolidated fiscal year and breached the financial covenants under its syndicated loan agreement. However, the excess of liabilities over assets was eliminated in the current consolidated fiscal year, and the company is no longer in breach of the financial covenants.」
The filing states that the breach of the syndicated loan's financial covenants that occurred in the previous fiscal year no longer existed in the current fiscal year because the company eliminated its excess of liabilities over assets. After the filing date, the company entered into a new agreement containing covenants including total borrowings of ¥1,951 million and net assets of at least ¥843 million. - FY2026-H1ReframedAnnual report
「Contract amount ¥3,039.4 million Loan (A): ¥1,874.4 million Loan (B): ¥1,165.0 million Contract amendment date 25 September 2025 Maturity date: 30 June 2026 Financial covenants (1) Maintain consolidated net assets as of each fiscal year-end at 75% or more of the amount in the same period of the previous year. (2) Maintain consolidated net assets as a positive amount as of the end of each quarter of the fiscal year ending March 2026, excluding the fiscal year-end.」
The company re-entered into the syndicated loan agreement, specifying a contract amount of ¥3,039.4 million, a maturity date of 30 June 2026, and financial covenants including net asset maintenance requirements. - FY2023MaterialisedAnnual report
「As of the end of the current consolidated fiscal year, the company had breached the financial covenants under its syndicated loan agreement. However, after discussions with the financial institutions to resolve the situation, the company obtained their agreement not to exercise their right to demand immediate repayment as a result of the breach of the financial covenants.」
Although the breach of the syndicated loan's financial covenants continued as of the end of the current consolidated fiscal year, the company obtained the financial institutions' agreement not to exercise their right to demand immediate repayment. - FY2022-Q1ReframedAnnual report
「To stabilize its cash flow, the company entered into a syndicated loan agreement totaling ¥1.67 billion, arranged by Resona Bank, Ltd., and drew down the loan on 30 June 2021. The agreement mainly contains financial covenants relating to the maintenance of net assets.」
After breaching the previous financial covenants, the company drew down a new syndicated loan totaling ¥1.67 billion and disclosed it as an agreement containing a net asset maintenance covenant. - FY2021MaterialisedAnnual report
「The company breached the financial covenants under its syndicated loan agreement as a result of recording a substantial operating loss in the current consolidated fiscal year. However, after discussions with the financial institutions to resolve the situation, the company obtained their agreement not to exercise their right to demand immediate repayment as a result of the breach of the financial covenants.」
Although an actual breach of the syndicated loan's financial covenants occurred, the company obtained the financial institutions' agreement not to exercise their right to demand immediate repayment. - FY2020-Q2ReframedAnnual report
「The company has entered into a syndicated loan agreement with financial institutions, which mainly contains certain financial covenants, including a net asset maintenance covenant and a profit covenant.」
Instead of the previous disclosure of financial covenants relating to the term loan, the filing states that the syndicated loan agreement contains a net asset maintenance covenant, a profit covenant and other covenants. Specific thresholds are not provided. - FY2017DroppedAnnual report
「The company currently obtains these funds primarily through long-term borrowings based on variable interest rates. If interest rate movements cause funding costs to rise, this may affect the operating results and financial position of the group.」
In the FY2017 annual securities report, the financial covenants requiring net assets of at least 75% and ordinary income or loss of at least ¥0, which were stated in the previous quarterly report, were omitted and replaced with an explanation of interest rate risk. - FY2017-Q3RestatedAnnual report
「(1) From the fiscal year ending March 2017 onward, the company must maintain total net assets on its non-consolidated balance sheet as of each fiscal year-end at 75% or more of total net assets as of the end of the immediately preceding fiscal year. (2) From the fiscal year ending March 2017 onward, the company must maintain ordinary income or loss on its non-consolidated income statement for each fiscal year at ¥0 or more.」
The term loan continues to be subject to financial covenants requiring net assets of at least 75% and ordinary income or loss of at least ¥0. - FY2017-Q2First statedAnnual report
「(1) From the fiscal year ending March 2017 onward, the company must maintain total net assets on its non-consolidated balance sheet as of each fiscal year-end at 75% or more of total net assets as of the end of the immediately preceding fiscal year. (2) From the fiscal year ending March 2017 onward, the company must maintain ordinary income or loss on its non-consolidated income statement for each fiscal year at ¥0 or more.」
The term loan for capital expenditures contains financial covenants requiring net assets of at least 75% and ordinary income or loss of at least ¥0.