Risk of Breaching Financial Covenants Under the Syndicated Loan
First written in FY2022. 1 of 2 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If these provisions are breached, the borrower may lose the benefit of time with respect to all obligations under the agreement.」
The financial covenants for the syndicated loan, including maintaining net assets at 75% or more, avoiding ordinary losses for two consecutive periods and maintaining the adjusted net debt multiple at 4 or below, continue to be disclosed. - FY2022First statedAnnual report
「If these provisions are breached, the borrower may lose the benefit of time with respect to all obligations under the agreement. ① At the end of each fiscal year ending on or after the date of execution of this agreement, maintain consolidated net assets at or above 75% of consolidated net assets at the end of the immediately preceding fiscal year. ② Do not record an ordinary loss for two consecutive fiscal years at the end of each fiscal year ending on or after the date of execution of this agreement. ③ Maintain at 4 or below the ratio of interest-bearing debt less cash and deposits to the total of operating profit, depreciation and amortization of goodwill.」
For the syndicated loan, the financial covenants, including maintaining net assets at 75% or more, avoiding ordinary losses for two consecutive periods and maintaining the adjusted net debt multiple at 4 or below, as well as the possibility of losing the benefit of time if the covenants are breached, are organized and disclosed for the first time.