Breach risk under syndicated-loan financial covenants and material uncertainty about going concern
First written in FY2017. 3 of 5 entries say "Restated". Latest entry: FY2020-Q3.
The whole theme swung hardest in 2022: 4 of 13 companies on the "Worse" side.
7 other companies' latest entry also says "Restated".
- FY2020-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended [the current third quarter]. There have also been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes have been identified in the contractual risks associated with the financial covenants under the syndicated loans. - FY2019-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended [the current third quarter]. There have also been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes have been identified in the contractual risks associated with the financial covenants under the syndicated loans. - FY2018RestatedAnnual report
「The Group has entered into syndicated loan agreements for part of its borrowings. These agreements contain financial covenants under which the Group may lose the benefit of time for repayment of its obligations under the loan agreements. If the Group breaches these covenants, its operating results and financial position may be adversely affected.」
The breach of financial covenants that occurred at the end of the previous fiscal year and the uncertainty regarding the going concern assumption have been resolved, but the contractual risk associated with the financial covenants continues to be disclosed. - FY2018-Q1MitigatedAnnual report
「As of the end of the previous consolidated fiscal year, the Company had been in breach of the financial covenants under the syndicated loan agreements it had entered into with its relationship financial institutions. As of the date of submission of this quarterly report, however, the syndicated loan agreements had been renewed and the cause of the covenant breach had been resolved. As a result, no event or situation giving rise to material uncertainty about the going concern assumption exists.」
The renewal of the syndicated loan agreements resolved the cause of the financial covenant breach, and no material uncertainty regarding the going concern assumption remains. - FY2017MaterialisedAnnual report
「As of the end of the current consolidated fiscal year, the Company was in breach of the financial covenants under the syndicated loan agreements it had entered into with its relationship financial institutions. With the full support of the arranger banks, the Company is discussing revisions to these covenants with the relationship financial institutions. This situation gives rise to material uncertainty about the going concern assumption.」
An actual breach of the financial covenants occurred and was disclosed as a situation giving rise to material uncertainty about the going concern assumption. The Company is discussing revisions to the covenants with support from the financial institutions.