Risk of Acceleration Due to Commitment Line Financial Covenants
First written in FY2020-Q3. 3 of 5 entries say "Worsened", first in FY2020. Latest entry: FY2025.
Cookbiz moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
17 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「For 2 consecutive fiscal years beginning with the fiscal year ending November 2026, ensure that operating income as reported in the consolidated statements of income for each fiscal year is not a loss for 2 consecutive years.」
After the risk associated with the financial covenants on the existing commitment line was eliminated, a new risk arose in connection with the ¥148 million term loan, subject to avoiding operating losses for 2 consecutive fiscal years. - FY2022-Q1MitigatedAnnual report
「Regarding the financial covenants under the commitment line agreement, which had an outstanding balance of ¥300 million at the end of the first-quarter accounting period, the company repaid all borrowings under the agreement in March 2022 and entered into a new overdraft agreement under which it borrowed the same amount. As a result, the risk of breaching the financial covenants applicable to the company's borrowings has been eliminated.」
The company states that the risk of breaching the financial covenants was eliminated by fully repaying the commitment line borrowings in March 2022 and switching to an overdraft agreement for the same amount. - FY2021WorsenedAnnual report
「Ordinary results must not be negative for 2 consecutive periods from the fiscal year ending November 2021 onward」
Regarding the financial covenants, avoiding negative ordinary results for 2 consecutive periods from the fiscal year ending November 2021 onward was stated as a condition, clarifying the relationship with the risk of losing the benefit of time due to losses continuing from the previous fiscal year. - FY2020WorsenedAnnual report
「The commitment line agreement, with an outstanding balance of ¥300 million at the end of the fiscal year, contains financial covenants. If ordinary results are negative for 2 consecutive periods, the company may lose the benefit of time with respect to the related borrowings.」
The commitment line balance subject to the financial covenants increased to ¥300 million, and the company disclosed the risk that the borrowings could become immediately repayable if losses continued for the full year. - FY2020-Q3First statedAnnual report
「The commitment line agreement, with an outstanding balance of ¥250 million at the end of the third-quarter accounting period, contains financial covenants. If ordinary results are negative for 2 consecutive periods, the company may lose the benefit of time with respect to the related borrowings.」
The company has disclosed that the newly secured and drawn borrowing facility could become immediately repayable if ordinary results are negative for 2 consecutive periods.