Breach of Syndicated Loan Financial Covenants Due to Decline in Consolidated Net Assets
First written in FY2017-Q2. 17 of 26 entries say "Restated". Latest entry: FY2026.
Nippon Chemi-Con moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「To stabilize its financial base over the medium to long term, the Company refinanced a syndicated loan maturing on 31 March 2026.」
The Company refinanced ¥9.1 billion of the syndicated loan maturing at the end of March 2026, with a five-year term, extending the maturity of its borrowings and stabilizing its financial base. - 2026-05-29RestatedGeneral Meetings of Shareholders
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
Restated the existence of borrowing agreements containing financial covenants. No new breach is described. - FY2025¥14.0 billion of borrowings extended through a new syndicated loanAnnual report
「To stabilize its financial base over the medium to long term, the Company arranged to extend ¥14.0 billion through a new syndicated loan, comprising a ¥11.0 billion syndicated commitment line and ¥3.0 billion in working capital facilities maturing in September 2024.」
While continuing to disclose the existence of borrowing agreements containing financial covenants, the Company extended the ¥14.0 billion due to mature through a new three-year syndicated loan. - FY2025-H1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The Company continues to disclose the existence of borrowing agreements containing financial covenants. No new specific circumstances involving a covenant breach are disclosed this time either. - FY2024-Q3RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information. There are no material events or other matters to report.」
The Company continues to disclose the existence of borrowing agreements containing financial covenants, while stating that there are no material events or other matters to report. No new covenant breach is disclosed. - FY2024-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information. There are no material events or other matters to report.」
The existence of borrowing agreements containing financial covenants continues to be disclosed. At the same time, the Company states that there are no material events or other matters to report and does not disclose any new specific circumstances involving a covenant breach. - FY2023-Q3RestatedAnnual report
「There are no material events or other matters.」
The disclosure that there are no material events or other matters to report continues. At the same time, the Company notes that syndicated loans and other agreements contain financial covenants. - FY2023-Q2RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information. There are no material events or other matters to report.」
While reiterating the existence of borrowing agreements containing financial covenants, the Company states that there are no material events or other matters to report and does not disclose any new specific circumstances involving a covenant breach. - FY2023-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information. There are no material events or other matters to report.」
The existence of borrowing agreements containing financial covenants has been reiterated. At the same time, the Company again states that there are no material events or other matters to report, and no new specific circumstances involving a covenant breach are disclosed. - FY2022-Q3RestatedAnnual report
「There are no material events or other matters.」
While stating that there are no material events or other matters to report, the Company continues to have agreements such as syndicated loans containing financial covenants. No new specific circumstances involving a covenant breach are disclosed this time. - FY2022-Q2RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The existence of borrowing agreements containing financial covenants has been reiterated. This quarterly report does not specify any new circumstances involving a covenant breach or a loss of the benefit of time. - FY2022-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The existence of borrowing agreements containing financial covenants continues to be disclosed. The Company states that there are no material events or other matters to report, and the current disclosure does not specify any covenant breach. - FY2021RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information.」
The existence of borrowing agreements containing financial covenants has been reiterated. This annual report does not explicitly mention the previously disclosed covenant breach or consent relating to a loss of the benefit of time. - FY2021-Q3SoftenedAnnual report
「During the nine-month period of the current fiscal year, there were no matters relating to the business, accounting or other matters described in this quarterly report that occurred and could have a material effect on investors' investment decisions, nor were there any material changes to the "Business and Other Risks" described in the securities report for the previous fiscal year. There are no material events or other matters to report. The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, which contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other financial information.」
The breach of financial covenants resulting from consolidated net assets falling below the level specified through the previous quarter, and the financial institutions' consent, have not been reiterated. Instead, the disclosure has returned to general wording regarding the agreements and covenants, while stating that there are no material events or other matters to report. - FY2021-Q2MaterialisedAnnual report
「Because consolidated net assets at the end of the second quarter of the current consolidated fiscal year fell below a specified level, the company is in breach of financial covenants under syndicated loans and certain borrowing agreements. It has obtained consent from its financial institutions not to exercise their right to demand immediate repayment.」
Compared with the general clause wording in the previous quarter, the breach resulting from consolidated net assets falling below a specified level and the financial institutions' consent not to exercise their right to declare a loss of the benefit of time have again been stated explicitly. - FY2021-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company continues to disclose the existence of borrowing agreements containing financial covenants. The current disclosure does not mention the covenant breach or the consent from financial institutions reported previously. - FY2020-Q3SoftenedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The filing does not mention the breach of financial covenants resulting from consolidated net assets falling below the specified level, or the consent from financial institutions not to exercise their right to demand immediate repayment, both reported in the previous quarter. It has returned to a general description of the agreements and covenants. - FY2020-Q2MaterialisedAnnual report
「Because consolidated net assets at the end of the second quarter of the current consolidated fiscal year fell below a specified level, the company is in breach of financial covenants under syndicated loans and certain borrowing agreements. It has obtained consent from its financial institutions not to exercise their right to demand immediate repayment.」
The decline in consolidated net assets below a specified level and the breach of financial covenants under syndicated loans and certain borrowing agreements were explicitly identified as significant events and other matters. The company has obtained consent from its financial institutions not to exercise their right to demand immediate repayment. - FY2020-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company continues to disclose the existence of borrowing agreements containing financial covenants. This quarterly report contains no new disclosure concerning the covenant breach or the consent from financial institutions reported in the previous quarter. - FY2019-Q3SoftenedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The breach of financial covenants and the consent from financial institutions not to exercise their right to demand immediate repayment, both explicitly reported in the immediately preceding quarter, were not reiterated, and the disclosure returned to a general description of the borrowing agreements and financial covenants. - FY2019-Q2MaterialisedAnnual report
「Because consolidated net assets at the end of the second quarter of the current consolidated fiscal year fell below a specified level, the company is in breach of financial covenants under syndicated loans and certain borrowing agreements. It has obtained consent from its financial institutions not to exercise their right to demand immediate repayment.」
The decline in consolidated net assets resulted in an explicit breach of financial covenants not only under syndicated loans but also under certain borrowing agreements. The company has obtained consent from its financial institutions not to exercise their right to demand immediate repayment. - FY2019-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company continues to disclose the existence of borrowing agreements containing financial covenants. - FY2018RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company has reiterated the existence of borrowing agreements containing financial covenants. The current filing does not indicate any new developments concerning the covenant breach reported previously. - FY2018-Q3RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company has reiterated the existence of borrowing agreements containing financial covenants. The current filing does not indicate any new developments concerning the covenant breach reported previously. - FY2018-Q1RestatedAnnual report
「The Company has entered into syndicated loan, term loan and commitment line agreements with financial institutions, and these agreements contain financial covenants based on certain indicators calculated from the consolidated balance sheet and other information.」
The company continues to disclose the existence of borrowing agreements containing financial covenants. The current filing does not describe any new developments concerning the covenant breach reported previously. - FY2017-Q2First statedAnnual report
「Because consolidated net assets at the end of the second quarter of the current consolidated fiscal year fell below a specified level, the company is in breach of financial covenants under certain syndicated loans. However, it maintains close relationships with its principal lending banks, led by its main bank, and has obtained informal consent from its principal financial institutions that they will not exercise their right to demand immediate repayment despite the breach of the financial covenants.」
Consolidated net assets fell below a specified level, resulting in an actual breach of financial covenants under syndicated loans. The company also stated that it had obtained informal consent from its principal financial institutions not to exercise their right to demand immediate repayment.