Risk of Breaching Financial Covenants Under Syndicated Loans
First written in FY2018-Q2. 11 of 20 entries say "Restated". Latest entry: FY2025.
- FY2025MitigatedAnnual report
「Current consolidated fiscal year (31 March 2025). No applicable items.」
The financial covenant disclosures for the commitment line state that there were no applicable items for the current consolidated fiscal year. - FY2024-Q3RestatedAnnual report
「Third quarter of the current consolidated fiscal year (31 December 2023). The commitment line agreement entered into by the Company is subject to the following financial covenants: ① The amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level. ② The ordinary profit or loss reported in the consolidated income statement at each consolidated fiscal year-end must not be a loss.」
The two conditions under the commitment line agreement, the net asset maintenance covenant and the ordinary profit or loss condition, continue to be disclosed. - FY2024-Q2RestatedAnnual report
「Second quarter of the current consolidated fiscal year (30 September 2023). The commitment line agreement entered into by the Company is subject to the following financial covenants: ① The amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level. ② The ordinary profit or loss reported in the consolidated income statement at each consolidated fiscal year-end must not be a loss.」
Two conditions continue to be disclosed under the commitment line agreement: maintaining net assets at 75% or more of the year-earlier level and not reporting an ordinary loss. - FY2024-Q1Added an ordinary profit or loss condition to the financial covenant disclosuresAnnual report
「During the first quarter of the current consolidated fiscal year, the commitment line agreement entered into by the Company was subject to the following financial covenants: ① The amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level. ② The ordinary profit or loss reported in the consolidated income statement at each consolidated fiscal year-end must not be a loss.」
The disclosure at the end of the previous fiscal year covered only the net asset maintenance covenant, while the first quarter disclosure also included the condition not to report an ordinary loss, expanding the financial covenant disclosures. - FY2023RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the following financial covenant: the amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level.」
The net asset maintenance covenant under the commitment line agreement continues to be disclosed. - FY2023-Q3RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the following financial covenant. The amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level.」
The condition to maintain net assets at 75% or more of the year-earlier level continues to be disclosed as a financial covenant under the commitment line agreement. - FY2023-Q2RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the following financial covenant: the amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level.」
Of the financial covenants disclosed since the previous fiscal year, the condition to maintain net assets at 75% or more of the year-earlier level remains in place. - FY2022SoftenedAnnual report
「The commitment line agreement entered into by the Company is subject to the following financial covenant: the amount of net assets reported in the net assets section of the consolidated balance sheet at each consolidated fiscal year-end must be maintained at 75% or more of the year-earlier level.」
The condition not to report an ordinary loss, which was disclosed in the previous fiscal year, was omitted from the current year's disclosure, leaving only the condition to maintain net assets at 75% or more of the year-earlier level. - FY2022-Q3RestatedAnnual report
「The commitment line agreement entered into by the company contains the following financial covenants: ① Maintain the amount of net assets shown in the consolidated balance sheet at each consolidated fiscal year-end at 75% or more of the amount in the previous corresponding period. ② Ensure that ordinary profit or loss shown in the consolidated income statement at each consolidated fiscal year-end is not a loss.」
The conditions to maintain net assets at 75% or more of the year-earlier level and not to report an ordinary loss continue to be disclosed. - FY2022-Q1MitigatedAnnual report
「The commitment line agreement entered into by the Company is subject to the following financial covenants. There was no outstanding balance drawn under the commitment line agreement at the end of the first quarter of the current consolidated fiscal year.」
The covenants requiring net assets to be maintained at 75% or more of the year-earlier level and ordinary profit or loss not to be a loss remain in place, but there was no outstanding balance drawn under the commitment line at the end of the first quarter. - FY2021-Q3RestatedAnnual report
「The commitment line agreement entered into by the company contains the following financial covenants: ① Maintain the amount of net assets shown in the consolidated balance sheet at each consolidated fiscal year-end at 75% or more of the amount in the previous corresponding period. ② Ensure that ordinary profit or loss shown in the consolidated income statement at each consolidated fiscal year-end is not a loss.」
As financial covenants under the commitment line agreement, the conditions to maintain net assets at 75% or more of the year-earlier level and not to report an ordinary loss continue to be disclosed. - FY2021-Q1Financial covenants disclosed again, with changes to their termsAnnual report
「The commitment line agreement entered into by the company contains the following financial covenants: ① Maintain the amount of net assets shown in the consolidated balance sheet at each consolidated fiscal year-end at 75% or more of the amount in the previous corresponding period. ② Ensure that ordinary profit or loss shown in the consolidated income statement at each consolidated fiscal year-end is not a loss.」
For the financial covenants that were described as having no applicable items at the end of the previous fiscal year, the covenants attached to the commitment line agreement have been restated for the current quarter. The stated conditions are to maintain net assets at 75% or more of the year-earlier level and not to report an ordinary loss at each fiscal year-end. - FY2020MitigatedAnnual report
「Current consolidated fiscal year (31 March 2020): No applicable matters.」
Although a breach of the financial covenants had been reported in the previous fiscal year, there were no applicable matters for the current consolidated fiscal year. - FY2020-Q2RestatedAnnual report
「Second quarter of the current consolidated fiscal year (30 September 2019): No applicable matters.」
The company stated that there were no applicable matters concerning the financial covenants during the second quarter. In addition, Tranche B of the syndicated commitment line agreement ended following early repayment. - FY2020-Q1MitigatedAnnual report
「First quarter of the current consolidated fiscal year (30 June 2019): No applicable matters.」
The first quarter contained no applicable matters concerning the financial covenants for which a breach had been reported at the end of the previous fiscal year. In addition, Tranche B of the syndicated facility agreement ended following early repayment. - FY2019MaterialisedAnnual report
「Although the company breached the financial covenants during the current consolidated fiscal year, it obtained the agreement of all transaction banks not to exercise their right to accelerate repayment.」
A breach of the financial covenants concerning the net asset maintenance or ordinary profit or loss provisions of the syndicated commitment line agreement actually occurred. However, the company obtained the agreement of all transaction banks not to exercise their right to accelerate repayment. - FY2019-Q3RestatedAnnual report
「The commitment line agreement entered into with 3 transaction banks on a syndicated basis contains the following financial covenants: ① Maintain total net assets at 75% or more of the amount shown in the previous corresponding period. ② Do not report a loss in ordinary profit or loss for 2 consecutive periods.」
The company continues to disclose the financial covenants concerning net asset maintenance and ordinary profit or loss. The agreement for Tranche A ended following the transfer of the WEB Business. - FY2019-Q2RestatedAnnual report
「The commitment line agreement entered into with 3 transaction banks on a syndicated basis contains the following financial covenants: ① Maintain total net assets at 75% or more of the amount shown in the previous corresponding period. ② Do not report a loss in ordinary profit or loss for 2 consecutive periods.」
The company continues to disclose the net asset maintenance covenant and ordinary profit or loss covenant included in the syndicated commitment line agreement. - FY2018-Q3RestatedAnnual report
「The agreement is subject to financial covenants, and a breach of these covenants could result in the loss of the benefit of time and affect our financial condition.」
The company continues to disclose the risk of losing the benefit of time for repayment due to breaches of the syndicated loan's financial covenants. - FY2018-Q2First statedAnnual report
「The agreement contains financial covenants. If the company breaches these covenants, it may lose the benefit of time for repayment and this could affect its financial condition.」
The syndicated loan agreement contains covenants requiring net assets to be maintained at 75% or more of the reference amount and prohibiting losses in ordinary profit or loss for two consecutive periods.