Risk of breaching financial covenants under syndicated loans
First written in FY2016. 11 of 19 entries say "Restated". Latest entry: FY2026.
- FY2026WorsenedAnnual report
「At the end of the current consolidated fiscal year, the Company was in breach of covenants (i) and (ii).」
For the Shingu Power Plant syndicated loan, only covenant (ii) had been breached in the previous interim period, whereas breaches of both the net assets covenant (i) and the DSCR covenant (ii) were reported at the fiscal year-end. It states that the Company obtained the financial institutions' agreement not to exercise their right to demand acceleration of the debt. - FY2026-H1MitigatedAnnual report
「At the end of the current interim consolidated fiscal year, the Company was in breach of covenant (ii). However, it continues to work to improve its operating performance and financial condition and is holding constructive discussions with its relationship financial institutions.」
Although breaches of both financial covenants (i) and (ii) were reported at the previous fiscal year-end, only a breach of covenant (ii) was reported at the end of the current interim consolidated fiscal year. Discussions with the financial institutions are continuing. - FY2025MaterialisedAnnual report
「At the end of the current consolidated fiscal year, the Company was in breach of covenants (i) and (ii). However, it continues to work to improve its operating performance and financial condition and has held constructive discussions with its relationship financial institutions, obtaining their agreement not to exercise their right to demand acceleration of the debt.」
For the EF-ON Shingu syndicated loan, an actual breach occurred of both the covenant requiring net assets not to be negative and the covenant requiring the DSCR not to be less than 1.0 for 3 consecutive periods. It states that the Company obtained the financial institutions' agreement not to exercise their right to demand acceleration of the debt. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2018WorsenedAnnual report
「A subsidiary of the Company has entered into a syndicated loan agreement to finance power plant construction. The agreement contains financial covenants. If the subsidiary breaches these covenants and is required to repay the relevant debt in full, this could affect the Group's financial condition.」
In addition to the existing financial covenant risk, the Company disclosed the outstanding balance and contractual exposure under syndicated loans, including the ¥1.5 billion additional loan for the Bungo-Ono Power Plant. - FY2018-Q3WorsenedAnnual report
「The Company has entered into an additional loan agreement, as outlined below, to pay for additional equipment construction costs, dated 30 March 2018. The borrower must comply with all of the following requirements concerning figures in financial reports and other documents as of the end of each accounting period beginning with the fiscal year ending June 2016, including the full-year and second-quarter financial periods referred to below.」
It states that the ¥1.5 billion additional loan agreement for additional equipment construction at the Bungo-Ono Power Plant contains financial covenants concerning the maintenance of net assets and repayment capacity. - FY2018-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2018-Q1WorsenedAnnual report
「The borrower must ensure that, for each annual and interim accounting period of the borrower ending after June 2021, the figure calculated using the formula below is not less than 1.0 for 3 consecutive periods, with each annual or interim accounting period counted as 1 period.」
The financial covenants under the new loan agreement were disclosed in detail, including the period beginning in June 2021, a threshold of 1.0 and the requirement to meet it for 3 consecutive periods. - FY2017-Q3WorsenedAnnual report
「The borrower covenants that, at the end of each fiscal year and interim period of the borrower ending after June 2021, the amount in the net assets section of the borrower's unconsolidated balance sheet will not be negative.」
Specific financial covenants, including a net assets requirement applicable from June 2021 onward, were disclosed for a new revolving credit agreement for the Mibu Power Plant. The Company and EF Bios are guarantors. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2017-Q1RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It concludes that there have been no material changes in the risk of breaching the syndicated loan's financial covenants. - FY2016First statedAnnual report
「The agreement contains financial covenants. If these covenants are breached and the Group is required to repay the relevant debt in full, its financial position may be affected.」
This is a contractual risk associated with financing for a subsidiary's power plant construction.