Company's Residual Debt Burden if the ESOP Trust's Share Price Declines
First written in FY2019-Q2. 3 of 9 entries say "Restated". Latest entry: FY2021.
31 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「Repayment of the bank borrowings was completed in March of that year.」
Regarding the possibility that the company may repay the ESOP trust's borrowings if the trust is unable to repay them in full, the filing states that the related borrowings have been fully repaid, reducing the previous guarantee and repayment risk. - FY2021-Q3MaterialisedAnnual report
「Because the employee stock ownership plan trust is unable to repay its borrowings in full and the company will repay them, the company has recognized accounts payable for the scheduled repayment amount.」
Previously, the company disclosed the possibility that it would make the repayment if the share price declined. This time, it states that the employee stock ownership plan trust is unable to repay its borrowings in full and that the amount the company plans to repay has been recognized as accounts payable. - FY2021-Q2WorsenedAnnual report
「Because the employee stock ownership plan trust is expected to be unable to repay its borrowings in full and the company is expected to repay them, the company has recognized a provision for losses on guarantees for the estimated repayment amount.」
The provision for losses on guarantees established in anticipation that the company may repay the ESOP trust's borrowings increased from ¥67.253 million at the end of the previous fiscal year to ¥102.812 million at the end of the second quarter, and an additional provision of ¥35.559 million was recognized during the cumulative period under review. - FY2021-Q1WorsenedAnnual report
「Because the employee stock ownership plan trust is expected to be unable to repay its borrowings in full and the company is expected to repay them, the company has recognized a provision for losses on guarantees for the estimated repayment amount.」
The provision for losses on guarantees established in anticipation that the company may repay the ESOP trust's borrowings increased from ¥67.253 million at the end of the previous fiscal year to ¥90.299 million at the end of the current quarter, and an additional provision of ¥23.045 million was recognized during the quarter. - FY2020WorsenedAnnual report
「Because the employee stock ownership plan trust is expected to be unable to repay its borrowings in full and the company is expected to repay them, the company has recognized a provision for losses on guarantees for the estimated repayment amount.」
The company recognized a ¥67.253 million provision for losses on guarantees in connection with the risk that it may have to repay the residual debt if the share price declines. This does not indicate that a default had occurred; it reflects an estimate of the likelihood of repayment. - FY2020-Q2RestatedAnnual report
「If the employee stock ownership plan trust is unable to repay its borrowings in full because of a decline in the company's share price, the company will repay the residual debt to the lending bank. Employees of the group who participate in the employee stock ownership plan will not bear this burden.」
The company continues to disclose that it will repay the residual debt if the ESOP trust's share price declines. The current filing contains no statement that a default had occurred. - FY2020-Q1RestatedAnnual report
「If the employee stock ownership plan trust is unable to repay its borrowings in full because of a decline in the company's share price, the company will repay the residual debt to the lending bank. Employees of the group who participate in the employee stock ownership plan will not bear this burden.」
The company continues to disclose that it will repay the residual debt if the ESOP trust's share price declines. - FY2019-Q3RestatedAnnual report
「If the employee stock ownership plan trust is unable to repay its borrowings in full because of a decline in the company's share price, the company will repay the residual debt to the lending bank. Employees of the group who participate in the employee stock ownership plan will not bear this burden.」
The company continues to disclose that it will repay the residual debt if the ESOP trust's share price declines. There is no statement that a default had occurred as of the filing date. - FY2019-Q2First statedAnnual report
「If the employee stock ownership plan trust is unable to repay its borrowings in full because of a decline in the company's share price, the company will repay the residual debt to the lending bank. Employees of the group who participate in the employee stock ownership plan will not bear this burden.」
For the employee stock ownership plan trust-type ESOP, the company has explicitly disclosed that it will repay the residual debt if the trust is unable to repay its borrowings in full because of a decline in the share price. There is no statement that a default had occurred as of the filing date.