Breach of Syndicated Loan Financial Covenants Due to Capital Shortfall
First written in FY2016. 17 of 34 entries say "Restated". Latest entry: 2026-09-30.
Teac moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
5 other companies' latest entry also says "Reframed".
- 2026-09-30ReframedTimely disclosure
「本契約に基づきコミットメント期限が 1 年間延長されました。」
上限33.5億円のシンジケーション型コミットメントラインについて、2026年9月30日満期の契約期限が1年間延長され、契約期間の条件が変更された。 - FY2026ReframedAnnual report
「On 24 March 2026, we entered into a syndicated loan commitment line agreement with a ¥3,350 million limit and a maturity date of 30 September 2026 (extended maturity date: 30 September 2028).」
The agreement was changed from the existing ¥2,500 million facility to a new syndicated loan commitment line with a ¥3,350 million limit. The amount drawn decreased from the fully drawn position at the interim period-end to ¥2,111 million at fiscal year-end. - 2026-06-01ReframedGeneral Meetings of Shareholders
「This agreement includes the following financial covenants.」
In addition to the total commitment line and amount drawn, the disclosure specified financial covenants concerning operating results, the equity ratio, and the maintenance of the company's listing. - FY2026-H1Fully drawnAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,500 million syndicated loan commitment line agreement (¥2,500 million drawn during the interim consolidated accounting period).」
The ¥2,500 million commitment line was fully drawn at the end of the interim period. No new breaches of the financial covenants were disclosed. - FY2025-H1Increase in amount drawnAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,500 million syndicated loan commitment line agreement (¥2,400 million drawn during the interim consolidated accounting period). The agreement includes the financial covenants set out below.」
The commitment line with financial covenants retained its ¥2,500 million limit, and ¥2,400 million was drawn at the end of the interim period. No new covenant breaches were disclosed. - FY2024ReframedAnnual report
「The existing syndicated loan agreement, which had a ¥2,540 million limit and was scheduled to mature on 29 March 2024, was terminated. We entered into a new syndicated loan commitment line agreement with a ¥2,500 million limit and a maturity date of 31 March 2025, as well as a ¥1,300 million term loan agreement with a maturity date of 31 March 2028.」
The existing ¥2,540 million facility was terminated, and the funding agreements were changed to a ¥2,500 million commitment line and a ¥1,300 million term loan. The new agreements include conditions requiring an equity ratio of at least 10%, positive operating income before individually disclosed items, and continued listing status. - FY2024-Q3Increase in amount drawnAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,540 million syndicated loan commitment line agreement (¥2,337 million drawn during the third quarter).」
¥2,337 million was drawn at the end of the third quarter against the ¥2,540 million limit on the syndicated loan with financial covenants. No new breaches of the financial covenants were disclosed. - FY2024-Q2RestatedAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,540 million syndicated loan commitment line agreement (¥2,032 million drawn during the second quarter). The agreement includes the financial covenants set out below.」
We reconfirmed the existence of the syndicated loan with financial covenants and its ¥2,540 million limit. ¥2,032 million was drawn at the end of the second quarter, and no new covenant breaches were disclosed. - FY2024-Q1RestatedAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,540 million syndicated loan commitment line agreement (¥2,134 million drawn during the first quarter). The agreement includes the financial covenants set out below.」
We reconfirmed the syndicated loan agreement with financial covenants and that ¥2,134 million of the ¥2,540 million limit was drawn. No new covenant breaches were disclosed this time. - FY2023RestatedAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,540 million syndicated loan commitment line agreement (¥1,626 million drawn at the end of the fiscal year). The agreement includes the financial covenants set out below.」
The commitment line with financial covenants had a ¥2,540 million limit, and ¥1,626 million was drawn at fiscal year-end. No new covenant breaches were disclosed. - FY2023-Q3RestatedAnnual report
「To enable flexible and stable funding, we have entered into a ¥2,540 million syndicated loan commitment line agreement (¥2,540 million drawn as of the end of the third quarter). The agreement includes the financial covenants set out below.」
The ¥2,540 million syndicated loan was fully drawn at the end of the third quarter and is subject to financial covenants. No new covenant breaches were disclosed. - FY2023-Q2RestatedAnnual report
「The Company has entered into a ¥2,540 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,540 million had been drawn as of the end of the second quarter of the current consolidated fiscal year.」
We reconfirmed that the ¥2,540 million syndicated loan with financial covenants was fully drawn at the end of the second quarter. - FY2022ReframedAnnual report
「The agreement includes the following financial covenants: (1) operating income or loss before individually disclosed items shown in the consolidated statement of profit or loss for each fiscal year ending after the agreement date must not be a loss; and (2) the equity ratio in the consolidated statement of financial position at the end of each fiscal year ending after the agreement date must be maintained at 10% or higher.」
The disclosure of the financial covenants attached to the new syndicated loan changed from the previous total-equity requirement to conditions requiring operating income or loss before individually disclosed items not to be a loss and the equity ratio to be maintained at 10% or higher. - FY2022-Q3RestatedAnnual report
「The Company has entered into a ¥2,140 million bilateral commitment line to secure normal working capital, of which ¥2,140 million was drawn during the third quarter of the current consolidated fiscal year. The agreement includes the following financial covenants.」
Following the change to a bilateral commitment line, the full ¥2,140 million limit continued to be drawn, and the existence of the financial covenants was reconfirmed. No new breach was disclosed. - FY2022-Q2ReframedAnnual report
「On 21 September 2021, the Company entered into a bilateral commitment line agreement with a maturity date of 27 September 2022 and a ¥2,140 million limit. The commitment line agreement includes financial covenants. The syndicated loan agreement with a ¥2.14 billion limit arranged by MUFG Bank, Ltd. expired on 27 September 2021, the contractual termination date.」
The previous syndicated loan agreement expired, and the financing agreement changed to a bilateral commitment line with a ¥2,140 million limit. The new agreement also includes financial covenants. - FY2022-Q1RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the first quarter of the current consolidated fiscal year. The agreement includes the following financial covenants.」
It was reconfirmed that the full ¥2,140 million limit of the syndicated loan with financial covenants had been drawn at the end of the quarter and that the contractual covenants remained in place. No new breach was disclosed. - FY2021RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn at the end of the current consolidated fiscal year. The agreement includes the following financial covenants.」
The syndicated loan with financial covenants had a ¥2,140 million limit, which was fully drawn at year-end, and the existence of the agreement and its covenants was reconfirmed. - FY2021-Q3RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the third quarter of the current consolidated fiscal year.」
It was reconfirmed that the full ¥2,140 million limit of the syndicated loan with financial covenants had been drawn at the end of the quarter. No new breach was disclosed. - FY2021-Q2RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the second quarter of the current consolidated fiscal year.」
It was reconfirmed that the full ¥2,140 million limit of the syndicated loan with financial covenants had been drawn. - FY2021-Q1RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the first quarter of the current consolidated fiscal year.」
The full ¥2,140 million limit of the syndicated loan with financial covenants had been drawn, which was reconfirmed. No new breach was disclosed. - FY2020RestatedAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn at the end of the current consolidated fiscal year.」
The commitment line with financial covenants had a ¥2,140 million limit and was fully drawn at year-end, which was reconfirmed. - FY2020-Q3Reduction in commitment line and full drawdownAnnual report
「The Company has entered into a ¥2,140 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the third quarter of the current consolidated fiscal year. The agreement includes the following financial covenants.」
The disclosure stated that the maximum commitment under the syndicated loan with financial covenants had been reduced from ¥2,650 million to ¥2,140 million and that the full amount had been drawn at the end of the quarter. - FY2020-Q2RestatedAnnual report
「The Company has entered into a ¥2,650 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,140 million was drawn during the second quarter of the current consolidated fiscal year. The agreement includes the following financial covenants.」
The continued existence of the ¥2,650 million commitment line and its financial covenants was confirmed. The current disclosure does not mention any new breach. - FY2019-Q2MitigatedAnnual report
「As stated in “2. Business Overview, 1. Business and Other Risks,” the Group is subject to circumstances that raise substantial doubt about its ability to continue as a going concern. However, because performance has improved as a result of the shift to a B2B business and reductions in fixed costs and other expenses, the Group is complying with the syndicated loan's financial covenants and continues to secure sufficient support from its principal relationship banks. Accordingly, the Group has determined that no material uncertainty exists regarding its ability to continue as a going concern.」
Although significant events concerning going concern remain, the Group explained that it was complying with the syndicated loan's financial covenants against a backdrop of improved performance from the shift to B2B and fixed-cost reductions. - FY2019-Q1RestatedAnnual report
「As a result of improved performance from shifting to a B2B business and reducing fixed costs and other expenses, the Group complied with the syndicated loan's financial covenants and continued to secure sufficient support from its principal relationship banks.」
The explanation that the Group was complying with the syndicated loan's financial covenants, supported by improved performance from the shift to B2B and fixed-cost reductions, was reconfirmed. - FY2018MitigatedAnnual report
「As a result of improved performance from shifting to a B2B business and reducing fixed costs and other expenses, the Group complied with the syndicated loan's financial covenants and continued to secure sufficient support from its principal relationship banks.」
The disclosure stated that the financial covenants after renewal of the agreement had been complied with, following the breach that occurred at the end of the previous consolidated fiscal year. - FY2018-Q3ReframedAnnual report
「The Company has entered into a ¥2,800 million syndicated loan commitment line to secure flexible and stable financing, of which ¥2,220 million was drawn during the third quarter of the current consolidated fiscal year. The agreement includes the following financial covenant: the borrower undertakes to maintain total equity in the borrower's consolidated statement of financial position, prepared in accordance with International Financial Reporting Standards as designated, at ¥638 million or more at the end of each fiscal year ending after March 2018. The borrower prepares a consolidated statement of financial position at the end of each fiscal year.」
The disclosure specified that, under the renewed syndicated loan, the commitment line was ¥2,800 million, ¥2,220 million was drawn at the end of the quarter, and total equity had to be maintained at ¥638 million or more at the end of the fiscal year ending March 2018. From the fiscal year ending March 2019 onward, a further requirement was disclosed to maintain total equity at 0.1 or more of total assets. - FY2018-Q2RestatedAnnual report
「As a result of this situation, events or conditions existed that raised substantial doubt about the Company's ability to continue as a going concern. However, the syndicated loan agreement was renewed during the second quarter of the current fiscal year, resolving the grounds for the breach of the financial covenants.」
The breach of the financial covenants at the end of the previous consolidated fiscal year and the resolution of the grounds for the breach through renewal of the syndicated loan agreement were reconfirmed. - FY2018-Q1RestatedAnnual report
「At the end of the previous consolidated fiscal year, the Group was unable to comply with the financial covenants under the syndicated loan agreement. These required the Group to maintain total equity in the consolidated statement of financial position at ¥802 million or more and not to record a negative amount calculated by adding finance income to operating income before individually disclosed items in the consolidated statement of profit or loss, deducting finance costs, adding the share of profit or loss of investments accounted for using the equity method, deducting one-time gains or losses, and deducting foreign exchange gains or losses arising from hedges of the risk of changes in the foreign currency translation adjustment account. The Group therefore breached the financial covenants.」
The breach of the financial covenants at the end of the previous consolidated fiscal year was reconfirmed. - FY2017MaterialisedAnnual report
「The Group breached the financial covenants under the syndicated loan agreement entered into by the Company with its financial institutions and other lenders at the end of the current consolidated fiscal year because total equity was less than ¥802 million and the amount calculated by adding finance income to operating income before individually disclosed items in the consolidated statement of profit or loss, deducting finance costs, adding the share of profit or loss of investments accounted for using the equity method, deducting one-time gains or losses, and deducting foreign exchange gains or losses arising from hedges of the risk of changes in the foreign currency translation adjustment account was negative.」
Total equity was ¥638 million, below the contractual requirement of at least ¥802 million, resulting in a year-end breach of the financial covenants, including the earnings requirement. - FY2017-Q3RestatedAnnual report
「The Group breached the financial covenants under the syndicated loan agreement entered into by the Company with its financial institutions and other lenders at the end of the previous consolidated fiscal year because total equity fell below ¥1,500 million. During the second quarter of the current fiscal year, the syndicated loan agreement was renewed, resolving the grounds for the breach of the financial covenants.」
The breach of the financial covenants in the previous fiscal year and its resolution through renewal of the agreement in the second quarter were reconfirmed. - FY2017-Q2MitigatedAnnual report
「During the second quarter of the current fiscal year, the syndicated loan agreement was renewed, resolving the grounds for the breach of the financial covenants.」
The breach of the syndicated loan agreement's financial covenants that occurred at the end of the previous fiscal year was resolved through renewal of the agreement. Meanwhile, total equity was negative by ¥120 million. - FY2017-Q1WorsenedAnnual report
「At the end of the first quarter of the current fiscal year, the Company had a negative equity position of ¥91 million.」
In addition to the breach of the financial covenants due to insufficient equity at the end of the previous fiscal year, the Company had negative equity of ¥91 million at the end of the quarter. - FY2016MaterialisedAnnual report
「During the consolidated fiscal year, the total equity reported in the consolidated statement of financial position fell below ¥1,500 million, resulting in a breach at the end of the consolidated fiscal year of the financial covenants under the syndicated loan agreement entered into by the Company with its financial institutions and other lenders.」
Total equity was ¥802 million, breaching the contractual requirement to maintain at least ¥1,500 million.