Breach of Financial Covenants and Risk of Acceleration
First written in FY2016. 12 of 20 entries say "Mitigated", first in FY2017-Q3. Latest entry: FY2021.
- FY2021MitigatedAnnual report
「For the current consolidated fiscal year (31 March 2021), there are no applicable matters.」
The previous year-end filing stated that the company was in breach of financial covenants and had obtained the financial institutions' agreement, whereas the current year-end filing states that there are no applicable matters concerning the financial covenants. - FY2021-Q3MitigatedAnnual report
「For the third quarter of the current consolidated fiscal year (31 December 2020), (1) the company has given the following commitments in respect of ¥25 million in borrowings. (2) It has given the following commitments in respect of ¥485.743 million in lease liabilities.」
Borrowings subject to financial covenants decreased from ¥100 million at the end of the previous consolidated fiscal year to ¥25 million, while lease liabilities decreased from ¥525.712 million to ¥485.743 million. This filing does not state that a new covenant breach occurred at the end of the quarter. - FY2021-Q2MitigatedAnnual report
「(1) The company has given the following commitments in respect of ¥50 million in borrowings.」
Borrowings subject to financial covenants decreased from ¥100 million at the end of the previous consolidated fiscal year to ¥50 million, while lease liabilities decreased from ¥525 million to ¥499 million. This filing does not state that a new covenant breach occurred at the end of the quarter. - FY2020MaterialisedAnnual report
「The company was in breach of financial covenants on certain borrowings at the end of the current consolidated fiscal year. The company explained its financial position and funding plans to the lending financial institutions and obtained their agreement not to require the creation of security interests.」
Although repayments of long-term borrowings progressed, the company drew down ¥500 million in short-term borrowings, and a breach of the financial covenants recurred at the end of the current fiscal year. The company obtained the financial institutions' agreement not to require the creation of security interests. - FY2020-Q3MitigatedAnnual report
「Total liabilities decreased by ¥182 million from the end of the previous consolidated fiscal year to ¥3,675 million. The main factors were an ¥86 million increase in accounts payable, offset by a ¥180 million decrease in long-term borrowings due to repayments and a ¥102 million decrease in other non-current liabilities.」
Repayments of long-term borrowings have reduced liabilities and borrowings subject to financial covenants. The financial covenants and the risk of security interests being created in the event of a breach remain in place. - FY2020-Q2MitigatedAnnual report
「Total liabilities decreased by ¥313 million from the end of the previous consolidated fiscal year to ¥3,545 million. The main factor was a ¥120 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings have reduced liabilities and borrowings subject to financial covenants. The financial covenants and the risk of security interests being created in the event of a breach remain in place. - FY2020-Q1MitigatedAnnual report
「Total liabilities decreased by ¥74 million from the end of the previous consolidated fiscal year to ¥3,783 million. The main factor was a ¥60 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings have reduced liabilities and borrowings subject to financial covenants. The financial covenants and the risk of security interests being created in the event of a breach remain in place. - FY2019MitigatedAnnual report
「Total liabilities decreased by ¥526 million from the end of the previous consolidated fiscal year to ¥3,858 million. The main factor was a ¥330 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings have reduced liabilities and borrowings subject to financial covenants. At 31 March 2019, the subject borrowings were ¥105 million and ¥200 million, and lease liabilities were ¥577 million, indicating lower exposure than at the end of the previous fiscal year. - FY2019-Q3MitigatedAnnual report
「Total liabilities decreased by ¥535 million from the end of the previous consolidated fiscal year to ¥3,849 million. The main factor was a ¥270 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings have reduced liabilities and outstanding borrowings. Borrowings subject to financial covenants also decreased from ¥245 million and ¥300 million at the end of the previous consolidated fiscal year to ¥140 million and ¥225 million, respectively, and exposure continues to decline. The risk of security interests being created in the event of a covenant breach remains in place. - FY2019-Q2MitigatedAnnual report
「Total liabilities decreased by ¥333 million from the end of the previous consolidated fiscal year to ¥4,051 million. The main factor was a ¥180 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings have reduced liabilities and outstanding borrowings, and exposure to the financial covenants continues to decline. The financial covenants and the risk of security interests being created in the event of a breach remain in place. - FY2019-Q1MitigatedAnnual report
「Total liabilities decreased by ¥191 million from the end of the previous consolidated fiscal year to ¥4,193 million. The main factor was a ¥90 million decrease in long-term borrowings due to repayments.」
Repayments of long-term borrowings reduced the outstanding borrowings, and borrowings subject to financial covenants at the end of this quarter also declined from the end of the previous fiscal year. The financial covenants and the risk of security interests being created in the event of a breach remain in place. - FY2018RestatedAnnual report
「Certain borrowings and finance lease transactions are subject to financial covenants. If the company breaches the commitment clauses, it may be required to create security interests over its time deposits.」
The filing continues to state the financial covenants following their amendment and the risk that security interests may be required over time deposits in the event of a covenant breach. - FY2018-Q3RestatedAnnual report
「(1) The company has given the following commitments in respect of ¥280 million in borrowings. It has also agreed with its lending financial institutions to amend the relevant financial covenants as of 30 December 2016.」
The filing continues to state the financial covenants and commitments following their amendment. It does not state that a new covenant breach occurred at the end of this quarter. - FY2018-Q2RestatedAnnual report
「(1) At the end of each fiscal year, the total net assets in the consolidated balance sheet must be maintained at no less than 95% of the total net assets for the fiscal year ended March 2016.」
The filing continues to state the commitments agreed after the financial covenants were amended. It does not state that a new breach occurred at the end of the second quarter. - FY2018-Q1RestatedAnnual report
「(1) At the end of each fiscal year, the total net assets in the consolidated balance sheet must be maintained at no less than 95% of the total net assets for the fiscal year ended March 2016.」
The filing continues to state the financial covenants and the commitments agreed after their amendment. This filing does not state that any new covenant breach has occurred. - FY2017MitigatedAnnual report
「The Company was in breach of the financial covenants at the end of the previous consolidated fiscal year, but agreed with its lending financial institutions on 30 December 2016 to change those financial covenants. Under the amended financial covenants, the Company's financial position at the end of the consolidated fiscal year would not constitute a breach.」
It explains that, following an agreement with the financial institutions to amend the covenants, the amended terms mean that the company is no longer in breach at the end of the current fiscal year. - FY2017-Q3MitigatedAnnual report
「The Company was in breach of the financial covenants at the end of the previous consolidated fiscal year, but agreed with its lending financial institutions on 30 December 2016 to change those financial covenants. Under the amended financial covenants, the Company's financial position at the end of the third quarter of the consolidated fiscal year would not constitute a breach.」
The Company reached an agreement with its financial institutions to amend the financial covenants relating to some borrowings, and under the amended conditions it was no longer in breach at the end of the quarter. The Company continues to provide undertakings relating to other financial covenants. - FY2017-Q2WorsenedAnnual report
「The Company was in breach of the above financial covenants at the end of the second quarter of the consolidated fiscal year. The Company explained its financial position, funding plans and other matters to its lending financial institutions and requested a deferral of the exercise of their right to declare the loans immediately due and payable.」
The breach of the financial covenants continues. The disclosure has changed from the previous statement that the Company had obtained consent not to exercise the right to declare the loans immediately due and payable to a statement that it had requested financial institutions to defer exercising that right. - FY2017-Q1RestatedAnnual report
「The Company was in breach of the above financial covenants at the end of the first quarter of the consolidated fiscal year.」
While the breach of the financial covenants continued at the end of the quarter, the Company obtained the consent of its financial institutions not to exercise their right to declare the loans immediately due and payable. - FY2016MaterialisedAnnual report
「The Company was in breach of the above financial covenants at the end of the consolidated fiscal year.」
While the Company was in breach of multiple financial covenants, including the requirement to maintain net assets at 75% or more, it obtained the consent of its financial institutions not to exercise their right to declare the loans immediately due and payable.