Risk of prepayment due to financial covenants in loan agreements
First written in FY2016. 5 of 14 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2017: 8 of 55 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「(Note) The amount was repaid on 29 September 2025, and the agreement has ended.」
The disclosure states that the ¥200 million commitment line agreement of Niigata Okamoto Glass was repaid on 29 September 2025 and has ended. - FY2025New commitment line agreementAnnual report
「Contract term: 30 September 2024 to 29 September 2025; commitment amount: ¥200 million; amount drawn at the end of the fiscal year: ¥100 million; financial covenant: Niigata Okamoto Glass Co., Ltd. must not record an ordinary loss in the income statement for any fiscal year.」
Niigata Okamoto Glass entered into a ¥200 million commitment line agreement with Daishi Hokuetsu Bank and had drawn ¥100 million at the end of the fiscal year. The agreement includes a financial covenant relating to ordinary losses at the subsidiary. - FY2023MitigatedAnnual report
「At the end of the previous consolidated fiscal year, ¥609.096 million of borrowings subject to financial covenants breached a covenant requiring total net assets on the consolidated and non-consolidated balance sheets to be maintained at 75% or more of the base year's level. Under an amendment agreement dated 30 March 2023, the base year was updated and the covenant was changed to require total net assets on the consolidated balance sheet to be maintained at 90% or more of the base year's level, thereby resolving the breach of the financial covenant.」
The breach of the financial covenant relating to ¥609.096 million of borrowings that occurred at the end of the previous consolidated fiscal year was resolved under an amendment agreement. - FY2023-Q3MitigatedAnnual report
「At the end of the previous consolidated fiscal year, ¥609.096 million of borrowings subject to financial covenants breached a covenant requiring total net assets on the consolidated and non-consolidated balance sheets to be maintained at 75% or more of the base year's level. The Company obtained the financial institutions' consent to defer exercise of their right to accelerate repayment. At the end of the third quarter of the current consolidated fiscal year, the balance of these borrowings was ¥502.280 million.」
The breach of financial covenants continues, but the balance of borrowings subject to the covenants decreased from ¥609.096 million at the end of the previous consolidated fiscal year to ¥502.280 million. The arrangement under which the financial institutions consented to defer exercise of their rights also continues. - FY2023-Q2MitigatedAnnual report
「At the end of the previous consolidated fiscal year, ¥609.096 million of borrowings subject to financial covenants breached a covenant requiring total net assets on the consolidated and non-consolidated balance sheets to be maintained at 75% or more of the base year's level. The Company obtained the financial institutions' consent to defer exercise of their right to accelerate repayment. At the end of the second quarter of the current consolidated fiscal year, the balance of these borrowings was ¥554.552 million.」
The breach of financial covenants continues, but the balance of borrowings subject to the covenants decreased from ¥609.096 million at the end of the previous consolidated fiscal year to ¥554.552 million. The arrangement under which the financial institutions consented to defer exercise of their rights also continues. - FY2023-Q1MitigatedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, ¥581.824 million of the borrowings breached a financial covenant requiring total net assets on the consolidated and non-consolidated balance sheets to be maintained at 75% or more of the base year's level. The Company obtained the financial institutions' consent to defer exercise of their right to accelerate repayment.」
The breach of financial covenants continues, but the amount of borrowings subject to the covenant decreased from ¥609.096 million at the end of the previous consolidated fiscal year to ¥581.824 million. The Company obtained the financial institutions' consent to defer exercise of their rights. - FY2022MaterialisedAnnual report
「At the end of the current consolidated fiscal year, ¥609.096 million of the borrowings breached a financial covenant requiring total net assets on the consolidated and non-consolidated balance sheets to be maintained at 75% or more of the base year's level. The Company obtained the financial institutions' consent to defer exercise of their right to accelerate repayment.」
As at the end of the current consolidated fiscal year, a breach of financial covenants occurred with respect to ¥609.096 million of borrowings, following the breach at the end of the previous consolidated fiscal year. The Company obtained the financial institutions' consent to defer exercise of their rights. - FY2022-Q3RestatedAnnual report
「Although the Company breached the financial covenants on some borrowing agreements with its financial institutions, it obtained their consent not to exercise their right to accelerate repayment immediately.」
The disclosure reiterates the breach of financial covenants and the Company's receipt of financial institutions' consent not to exercise their right to accelerate repayment immediately. - FY2022-Q2RestatedAnnual report
「Although the Company breached the financial covenants on some borrowing agreements with its financial institutions, it obtained their consent not to exercise their right to accelerate repayment immediately.」
The disclosure reiterates the breach of financial covenants at the end of the previous consolidated fiscal year and the Company's receipt of financial institutions' consent not to exercise their right to accelerate repayment immediately. - FY2022-Q1MaterialisedAnnual report
「At the end of the previous consolidated fiscal year, the Company breached the financial covenants attached to some borrowing agreements with its financial institutions.」
An event previously disclosed as a risk of breaching financial covenants is explicitly stated to have actually occurred at the end of the previous consolidated fiscal year. However, the Company obtained the financial institutions' consent not to exercise their right to accelerate repayment immediately. - FY2021-Q3WorsenedAnnual report
「As a result, during the current consolidated fiscal year, there is a possibility that the Group could breach the financial covenants attached to its syndicated loan agreements with financial institutions, creating circumstances that raise substantial doubt about the going-concern assumption.」
The possibility of breaching the financial covenants on the syndicated loans was explicitly disclosed against a backdrop of increased cumulative quarterly losses. The disclosure concerns a possibility of breach, not an actual breach. - FY2019RestatedAnnual report
「Some of the Group's borrowings are subject to financial covenants. If items such as the Company's consolidated and non-consolidated net assets or consolidated ordinary profit breach those covenants, the Company may become obligated to repay the borrowings before their maturity.」
The risk of accelerated repayment due to breaches of financial covenants is reiterated. - FY2018RestatedAnnual report
「Some of the Group's borrowings are subject to financial covenants. If items such as the Company's consolidated and non-consolidated net assets or consolidated ordinary profit breach those covenants, the Company may become obligated to repay the borrowings before their maturity.」
The risk of accelerated repayment due to breaches of financial covenants relating to net assets, consolidated ordinary profit and other metrics is reiterated. - FY2016First statedAnnual report
「Some of the Group's borrowings are subject to financial covenants. If items such as the Company's consolidated and non-consolidated net assets or consolidated ordinary profit breach those covenants, the Company may become obligated to repay the borrowings before their maturity.」
The disclosure identifies the possibility of breaching financial covenants based on financial metrics such as net assets and consolidated ordinary profit as a risk.