Financial Covenant Breach and Liquidity Risk Due to Negative Net Worth
First written in FY2021-Q3. 3 of 6 entries say "Mitigated", first in FY2021. Latest entry: FY2024.
41 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「In discussions with all lending financial institutions held during the first quarter of the current consolidated fiscal year, we obtained agreement to ease the repayment terms through the end of the current consolidated fiscal year and made repayments in accordance with that agreement. For repayments from the following consolidated fiscal year onward, we plan to discuss the matter with each lending financial institution, end the easing of the repayment terms and make repayments as contractually agreed.」
Repayments under the agreement to ease the repayment terms have been completed, and the company plans to end the easing from the following fiscal year onward and resume repayments as contractually agreed, reducing financial covenant and cash-flow risks. - FY2022-Q4ReframedAnnual report
「Regarding repayments from April 2023 onward, our policy is to continue discussions with the lending financial institutions by the end of March 2023, taking into account the future cash-flow and funding situation.」
Although agreement has been reached to ease the repayment terms through the end of March 2023, the filing states that repayments from April 2023 onward remain at the discussion stage with the financial institutions, taking cash flow and funding into account. - FY2022MitigatedAnnual report
「We have held discussions with all lending financial institutions, including the bank in question, based on a repayment plan that includes a review of the repayment due dates, and have reached agreement on easing the repayment terms through the end of the fiscal year ending March 2023.」
While some bank borrowings became overdue, discussions with all lending financial institutions resulted in an agreement to ease the repayment terms through the end of the fiscal year ending March 2023. - FY2022-Q2MaterialisedAnnual report
「These measures are still being implemented. As of the filing date of the quarterly report for the second quarter, funding prospects had not been secured. Although we will make every effort to secure funding, including loans from financial institutions, for approximately ¥5.8 billion of the debt related to ホープエナジー's energy business included in the consolidated balance sheet for the second quarter, it may become impossible to repay the full amount on schedule from mid-March 2022 onward.」
The filing states that, with no funding prospects in sight, approximately ¥5.8 billion of energy business-related debt may not be repaid in full when due. The cash-flow risk has materialised as a specific repayment concern. - FY2021MitigatedAnnual report
「With respect to the financial covenants, we have obtained the financial institutions' consent not to exercise their right to accelerate repayment and terminate the benefit of time.」
The filing states that, in response to the risk of breaching financial covenants and cash-flow risk associated with negative net worth, the company obtained the financial institutions' consent not to exercise their right to accelerate repayment and terminate the benefit of time. - FY2021-Q3First statedAnnual report
「If this situation is not resolved, the company may breach the financial covenants relating to period-end net assets under certain overdraft agreements at the end of the consolidated fiscal year. The outstanding balance under the overdraft agreements that may be subject to such a breach was ¥200 million as of the end of the third quarter of the current consolidated fiscal year.」
The filing newly states that, if negative net worth is not eliminated, the company may breach the financial covenants relating to period-end net assets at the end of the current consolidated fiscal year. It does not state that the breach had occurred as of the filing date.