Risk of Loss of Benefit of Time Due to Breach of Financial Covenants
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2019-Q3.
- FY2019-Q3MitigatedAnnual report
「On 31 January 2019, the company repaid the full outstanding balance of its borrowings to MUFG Bank, Ltd.」
The Company plans to repay in full the syndicated loan’s ¥225 million in long-term borrowings and ¥350 million in short-term borrowings, reducing its exposure to the risk of losing the benefit of time if financial covenants are breached. - FY2018RestatedAnnual report
「If the Company’s financial results deteriorate significantly in the future and it breaches its financial covenants, the lending financial institutions may demand repayment of the relevant borrowings, resulting in the loss of the benefit of time and requiring repayment in full. This could affect the Company’s financial condition and results of operations.」
The Company continues to disclose the risk of losing the benefit of time and being required to repay borrowings in full if financial covenants are breached. - FY2017First statedAnnual report
「If the Company’s financial results deteriorate significantly in the future and it breaches its financial covenants, the lending financial institutions may demand repayment of the relevant borrowings, resulting in the loss of the benefit of time and requiring repayment in full. This could affect the Company’s financial condition and results of operations.」
For the first time, the Company explicitly identifies as a separate risk the potential loss of the benefit of time and repayment in full if the financial covenants of its syndicated loan are breached.