Risk of Breaching Financial Covenants Under the Term Loan
First written in FY2016. 9 of 12 entries say "Mitigated", first in FY2017. Latest entry: FY2020.
The whole theme swung hardest in 2017: 8 of 62 companies on the "Worse" side.
11 other companies' latest entry also says "Dropped".
- FY2020DroppedAnnual report
「The agreement ended on 25 May 2020.」
The term loan agreement with financial covenants ended on 25 May 2020. The balance at the end of March 2020 had declined to ¥92.857 million, and disclosure of risks under the agreement has ended. - FY2020-Q3Increase in long-term borrowingsAnnual report
「Liabilities increased by ¥1,824 million from the end of the previous consolidated fiscal year to ¥9,082 million. This was mainly due to increases of ¥832 million in notes payable for equipment purchases included in other current liabilities, ¥516 million in long-term borrowings, ¥279 million in accounts payable included in other current liabilities, ¥108 million in consumption taxes payable and other items included in other current liabilities, and ¥66 million in accrued income taxes.」
The disclosure states that long-term borrowings increased by ¥516 million from the end of the previous consolidated fiscal year. There is no new disclosure regarding the terms of or a breach of the financial covenants, and the text does not establish whether the increased borrowings relate to the term loan in question. - FY2020-Q2MitigatedAnnual report
「Liabilities decreased by ¥767 million from the end of the previous consolidated fiscal year to ¥6,489 million. This was mainly due to decreases of ¥522 million in notes payable for equipment purchases included in other current liabilities and ¥311 million in long-term borrowings.」
Long-term borrowings decreased by ¥311 million from the end of the previous consolidated fiscal year, reconfirming the trend of declining balances related to borrowings subject to financial covenants. No change in or breach of the financial covenants themselves is disclosed. - FY2020-Q1MitigatedAnnual report
「Liabilities decreased by ¥309 million from the end of the previous consolidated fiscal year to ¥6,948 million. This was mainly due to an increase of ¥140 million in accrued expenses included in other current liabilities, and decreases of ¥190 million in notes payable for equipment purchases included in other current liabilities, ¥167 million in long-term borrowings, and ¥80 million in notes and accounts payable.」
Long-term borrowings decreased by ¥167 million from the end of the previous consolidated fiscal year, reconfirming the decrease in borrowings subject to financial covenants. - FY2019MitigatedAnnual report
「The Group's borrowings include a syndicated term loan agreement executed on 23 May 2012, with an outstanding balance of ¥278.571 million as of 31 March 2019, that contains financial covenants. If, at the end of each fiscal year, on both a standalone and consolidated basis, excluding quarterly and interim periods, the amount of net assets on the balance sheet after deducting the total of deferred hedge gains or losses and stock acquisition rights falls below 75% of the higher of the corresponding adjusted net assets at the end of the previous fiscal year or the adjusted net assets reported for the fiscal year ended March 2011, the Group will immediately lose the benefit of time for repayment.」
The term loan balance decreased from ¥464.285 million in the previous year to ¥278.571 million. The financial covenant requiring net assets to be maintained at 75% or more remains in place. - FY2019-Q3MitigatedAnnual report
「Liabilities decreased by ¥178 million from the end of the previous consolidated fiscal year to ¥6,004 million. This was mainly due to an increase of ¥238 million in notes payable for equipment purchases included in other current liabilities and a decrease of ¥410 million in long-term borrowings.」
The disclosure states that long-term borrowings decreased by ¥410 million from the end of the previous consolidated fiscal year, indicating a lower risk of breaching financial covenants due to reduced borrowings. - FY2019-Q2MitigatedAnnual report
「Liabilities increased by ¥548 million from the end of the previous consolidated fiscal year to ¥6,731 million. This was mainly due to increases of ¥384 million in notes payable for equipment purchases included in other current liabilities, ¥207 million in accounts payable included in other current liabilities, and ¥180 million in notes and accounts payable, and a decrease of ¥246 million in long-term borrowings.」
Long-term borrowings decreased by ¥246 million from the end of the previous consolidated fiscal year, indicating a lower risk of breaching financial covenants due to reduced borrowings such as the term loan. - FY2019-Q1MitigatedAnnual report
「Liabilities increased by ¥284 million from the end of the previous consolidated fiscal year to ¥6,468 million. This was mainly due to increases of ¥370 million in notes and accounts payable and ¥150 million in accrued expenses included in other current liabilities, and decreases of ¥69 million in the provision for bonuses and ¥167 million in long-term borrowings.」
The disclosure states that long-term borrowings decreased by ¥167 million from the end of the previous consolidated fiscal year. It contains no disclosure regarding the terms of the financial covenants themselves. - FY2018MitigatedAnnual report
「The Group's borrowings include a syndicated term loan agreement executed on 23 May 2012, with an outstanding balance of ¥464.285 million as of 31 March 2018, that contains financial covenants. If the amount of net assets at the end of each fiscal year falls below 75% of the reference amount, the Group will immediately lose the benefit of time for repayment.」
The term loan balance decreased from ¥650.000 million in the previous year to ¥464.285 million. The financial covenants and the requirement to maintain net assets at 75% or more remain in place. - FY2018-Q3MitigatedAnnual report
「Liabilities decreased by ¥531 million from the end of the previous consolidated fiscal year to ¥5,951 million. This was mainly due to increases of ¥673 million in notes and accounts payable, and decreases of ¥345 million in accrued income taxes, ¥118 million in accounts payable included in other current liabilities, ¥174 million in consumption taxes payable included in other current liabilities, ¥410 million in long-term borrowings, and ¥160 million in long-term accounts payable included in other non-current liabilities.」
The disclosure states that long-term borrowings decreased by ¥410 million from the end of the previous consolidated fiscal year. It does not state that the financial covenant terms themselves changed. - FY2017MitigatedAnnual report
「The Group's borrowings include a syndicated term loan agreement executed on 23 May 2012, with an outstanding balance of ¥650.000 million as of 31 March 2017, that contains financial covenants. If, at the end of each fiscal year, on both a standalone and consolidated basis, excluding quarterly and interim periods, the amount of net assets on the balance sheet after deducting the total of deferred hedge gains or losses and stock acquisition rights falls below 75% of the higher of the corresponding adjusted net assets at the end of the previous fiscal year or the adjusted net assets reported for the fiscal year ended March 2011, the Group will immediately lose the benefit of time for repayment.」
The term loan balance decreased from ¥835.714 million in the previous year to ¥650.000 million. The financial covenants and the requirement to maintain net assets at 75% or more remain in place, so the risk itself remains. - FY2016First statedAnnual report
「The Group's borrowings include a syndicated term loan agreement executed on 23 May 2012, with an outstanding balance of ¥835.714 million as of 31 March 2016, that contains financial covenants. If, at the end of each fiscal year, on both a standalone and consolidated basis, excluding quarterly and interim periods, the amount of net assets on the balance sheet after deducting the total of deferred hedge gains or losses and stock acquisition rights falls below 75% of the higher of the corresponding adjusted net assets at the end of the previous fiscal year or the adjusted net assets reported for the fiscal year ended March 2011, the Group will immediately lose the benefit of time for repayment.」
The disclosure states that borrowings for construction of the Motosu Factory are subject to a covenant requiring net assets to be maintained at 75% or more of the reference amount.