Guarantee liability risk if the share price falls in an E-Ship trust
First written in FY2023-Q3. 1 of 3 entries say "Restated". Latest entry: FY2026-H1.
Tokyu Fudosan Holdings moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
1 other company's latest entry also says "Reframed".
- FY2026-H1ReframedAnnual report
「The company will guarantee borrowings incurred by the E-Ship trust to acquire the company’s shares. If a decline in the company’s share price causes losses on the sale of shares equivalent to the outstanding borrowings to accumulate within the E-Ship trust, and borrowings equivalent to those losses remain at the end of the trust period, the company will repay the outstanding balance.」
No guarantee liability arose from a decline in the share price when the trust period of the previous E-Ship expired, but the reintroduction of a new E-Ship re-established the same guarantee liability risk. - FY2024RestatedAnnual report
「Because the Company will guarantee borrowings used by the E-Ship Trust to acquire Company shares, if the Company’s share price falls and losses on share sales accumulate in the E-Ship Trust, and borrowings equivalent to those losses remain outstanding in the trust at the end of the trust period, the Company will repay the outstanding balance.」
The company continues to disclose the guarantee liability risk associated with a decline in the share price of the E-Ship trust. - FY2023-Q3First statedAnnual report
「Because the Company will guarantee borrowings used by the E-Ship Trust to acquire Company shares, if the Company’s share price falls and losses on share sales accumulate in the E-Ship Trust, and borrowings equivalent to those losses remain outstanding in the trust at the end of the trust period, the Company will repay the outstanding balance.」
The company newly disclosed a contingent guarantee liability risk because it guarantees the borrowings used by the E-Ship trust to acquire shares and will repay any remaining borrowings if a balance remains at the end of the trust period due to a decline in the share price. The related maximum total share acquisition price is ¥6,923 million.