Breach of Financial Covenants under Loan Agreements
First written in FY2019. 4 of 7 entries say "Restated". Latest entry: FY2026.
NATTY SWANKY holdings moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
22 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「We have determined that there are no concerns regarding near-term cash management, including because the impact on our cash position would be limited even if a breach of the covenants resulted in the borrowings becoming repayable in full.」
In addition to the previously disclosed financial covenants concerning net assets and ordinary income or loss, the description of material events related to the going-concern assumption explicitly states the possibility of full repayment of borrowings if the covenants are breached. It does not explicitly state that an actual breach has occurred. - FY2025Specific financial covenant conditionsAnnual report
「The commitment agreements referred to above contain the following financial covenants.」
Specific conditions disclosed for the commitment agreements include maintaining net assets at no less than 75% of the reference amount, avoiding ordinary losses for 2 consecutive periods, maintaining net assets of at least ¥1,307,250 thousand, and maintaining ordinary income or loss at zero or above. - FY2023RestatedAnnual report
「Some transactions with financial institutions are subject to financial covenants in the borrowing agreements. If, in the unlikely event, these conditions are breached, this may affect our Group's operating results and cash flow through higher borrowing rates and loss of the benefit of time, among other consequences.」
The risk of higher interest rates and loss of the benefit of time due to a breach of financial covenants continues to be identified. - FY2022RestatedAnnual report
「If, in the unlikely event, these conditions are breached, this may affect our operating results and cash flow through higher borrowing rates and loss of the benefit of time, among other consequences.」
The risk of higher interest rates and loss of the benefit of time due to a breach of financial covenants in borrowing agreements continues to be identified. - FY2021RestatedAnnual report
「If, in the unlikely event, these conditions are breached, this may affect our operating results and cash flow through higher borrowing rates and loss of the benefit of time, among other consequences.」
The risk of higher interest rates and loss of the benefit of time due to a breach of financial covenants in borrowing agreements continues to be identified. - FY2020RestatedAnnual report
「If, in the unlikely event, these conditions are breached, this may affect our operating results and cash flow through higher borrowing rates and loss of the benefit of time, among other consequences.」
The risk of higher interest rates and loss of the benefit of time due to a breach of financial covenants in borrowing agreements continues to be identified. - FY2019First statedAnnual report
「Some transactions with financial institutions are subject to financial covenants in the borrowing agreements. If, in the unlikely event, these conditions are breached, this may affect our operating results and cash flow through higher borrowing rates and loss of the benefit of time, among other consequences.」
The possibility of higher interest rates and loss of the benefit of time if financial covenants are breached is described.