Risk of breaching financial covenants under the 75% net asset maintenance covenant
First written in FY2017-Q1. 3 of 6 entries say "Restated". Latest entry: FY2019.
16 other companies' latest entry also says "Dropped".
- FY2019DroppedAnnual report
「In the previous consolidated fiscal year, the company had entered into a bilateral commitment line agreement with one relationship bank. The agreement was cancelled on 12 February 2019.」
The bilateral commitment line agreement containing a covenant requiring consolidated net assets to be maintained at 75% or more was terminated, and the total loan commitments at the end of the fiscal year were zero. - FY2018-Q3RestatedAnnual report
「① Maintain the amount of net assets (capital) in the standalone balance sheet as of each fiscal year-end after the date of execution of this agreement at 75% or more of the amount at the end of the immediately preceding fiscal year.」
The covenant attached to the new bilateral commitment line agreement requiring standalone net assets to be maintained at 75% or more of the amount at the end of the immediately preceding fiscal year continues to be disclosed. - FY2018-Q1ReframedAnnual report
「With financial institutions that did not participate in extending the term of the above agreement, we entered into new bilateral commitment line agreements containing the following financial covenant: ① Maintain the amount of net assets (capital) in the standalone balance sheet as of each fiscal year-end after the date of execution of this agreement at 75% or more of the amount at the end of the immediately preceding fiscal year.」
Although the financial covenants in the existing agreement were unchanged, the new bilateral agreement includes a covenant requiring standalone net assets to be maintained at 75% or more of the amount at the end of the immediately preceding fiscal year. - FY2017-Q3RestatedAnnual report
「Maintain the total amount of net assets stated in the net assets section of the consolidated balance sheet in reports and other documents as of the end of the fiscal year ending June 2017 and each subsequent fiscal year at or above the higher of the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the fiscal year ended June 2016, or the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the immediately preceding fiscal year.」
The financial covenant requiring consolidated net assets to be maintained at 75% or more of the reference amount continues to be disclosed. - FY2017-Q2RestatedAnnual report
「Maintain the total amount of net assets stated in the net assets section of the consolidated balance sheet in reports and other documents as of the end of the fiscal year ending June 2017 and each subsequent fiscal year at or above the higher of the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the fiscal year ended June 2016, or the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the immediately preceding fiscal year.」
The financial covenant requiring consolidated net assets to be maintained at 75% or more of the reference amount continues to be disclosed. - FY2017-Q1First statedAnnual report
「Maintain the total amount of net assets stated in the net assets section of the consolidated balance sheet in reports and other documents as of the end of the fiscal year ending June 2017 and each subsequent fiscal year at or above the higher of the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the fiscal year ended June 2016, or the amount equivalent to 75% of the total amount of net assets stated in the consolidated balance sheet in reports and other documents as of the end of the immediately preceding fiscal year.」
When the loan commitment agreement was renewed, a covenant was added requiring consolidated net assets from the end of the fiscal year ending June 2017 onward to be maintained at 75% or more of the reference amount. The covenant is not currently in breach.