Liquidity Risk Arising from Financial Covenants
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2023.
Alps Alpine moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
2 other companies' latest entry also says "Softened".
- FY2023SoftenedAnnual report
「The Company and some of its consolidated subsidiaries have entered into loan commitment agreements with 4 financial institutions to secure liquidity and obtain working capital efficiently.」
The total amount of loan commitments decreased from ¥43.5 billion at the end of the previous fiscal year to ¥40.0 billion, while the number of financial institutions remained at 4. - FY2022RestatedAnnual report
「The Company and some of its consolidated subsidiaries have entered into loan commitment agreements with 4 financial institutions to secure liquidity and obtain working capital efficiently.」
The policy of securing liquidity through loan commitment agreements with 4 financial institutions continued. - FY2016First statedAnnual report
「The Group has entered into syndicated loan agreements and syndicated commitment line agreements with its relationship banks. If it breaches the financial covenants in these agreements, the lenders may demand early repayment of borrowings, which could affect the Group's financial position.」
The risk of demands for early repayment resulting from breaches of financial covenants was disclosed.