Occurrence of an event prescribed in the financial covenants under a loan agreement containing financial covenants and agreement by financial institutions to waive their rights
AKEBONO BRAKE INDUSTRY CO.,LTD. and the Group
Relevant loan agreement (an agreement with a syndicate of 8 banks, with Deutsche Bank AG, Tokyo Branch serving as arranger and agent)
An increase in inventories resulting from the buildup of inventory to fulfill supply obligations following the consolidation of US operations into one plant, and a temporary increase in working capital to address the abolition of bills of exchange accompanying the enforcement of the Act on Promotion of Proper Transactions for Small and Medium-sized Enterprises
There is no impact on the consolidated earnings forecast for the fiscal year ending March 2027.
For relevant periods ending on or after 31 March 2027, the Group will progressively reduce North American inventories and normalize working capital to meet the standards prescribed in the financial covenants. At present, the Group believes that this matter will not have a material impact on its liquidity or the continuation of its business.
| Item | Details |
|---|---|
| Event name | Occurrence of an event prescribed in the financial covenants under a loan agreement containing financial covenants and agreement by financial institutions to waive their rights |
| Date of occurrence | 12 November 2026 (the date on which the occurrence of an event prescribed in the financial covenants was confirmed) |
| Date recognized / date notice received | 12 November 2026 (the date on which the Company confirmed that the threshold had been breached) |
| Subject Entity | AKEBONO BRAKE INDUSTRY CO.,LTD. and the Group |
| Target Locations / Products | Relevant loan agreement (an agreement with a syndicate of 8 banks, with Deutsche Bank AG, Tokyo Branch serving as arranger and agent) |
| Cause | An increase in inventories resulting from the buildup of inventory to fulfill supply obligations following the consolidation of US operations into one plant, and a temporary increase in working capital to address the abolition of bills of exchange accompanying the enforcement of the Act on Promotion of Proper Transactions for Small and Medium-sized Enterprises |
| Impact on Earnings Forecast | There is no impact on the consolidated earnings forecast for the fiscal year ending March 2027. |
| Outlook | For relevant periods ending on or after 31 March 2027, the Group will progressively reduce North American inventories and normalize working capital to meet the standards prescribed in the financial covenants. At present, the Group believes that this matter will not have a material impact on its liquidity or the continuation of its business. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The main factors were an increase in inventories resulting from the buildup of inventory to fulfill supply obligations following the consolidation of US operations into one plant, and a temporary increase in working capital to address the abolition of bills of exchange accompanying the enforcement of the Act on Promotion of Proper Transactions for Small and Medium-sized Enterprises.