Risk of accelerated repayment of borrowings following a breach of financial covenants
First written in FY2025. 1 of 2 entries say "Mitigated", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The ¥140.4 million in long-term borrowings due for repayment within one year and the ¥103.3 million in long-term borrowings outstanding at the end of the consolidated fiscal year are subject to the following financial covenants. If these covenants are breached, the Company may be required to repay the borrowings in full at the lenders’ request.」
The financial covenants remain in place, but the relevant long-term borrowings have decreased from ¥243.7 million in the previous fiscal year to ¥103.3 million. - FY2025First statedAnnual report
「The ¥140.4 million in long-term borrowings due for repayment within one year and the ¥243.7 million in long-term borrowings outstanding at the end of the consolidated fiscal year are subject to the following financial covenants. If these covenants are breached, the Company may be required to repay the borrowings in full at the lenders’ request. (1) Maintain consolidated net assets as of the end of each fiscal period at 75% or more of the total net assets reported in the consolidated balance sheet as of the end of the immediately preceding fiscal period. (2) Avoid recording an ordinary loss for two consecutive fiscal periods, based on the ordinary profit or loss reported in the consolidated income statement as of the end of each fiscal period.」
The Company has disclosed financial covenants under its borrowing agreements requiring consolidated net assets to be maintained at 75% or more of the previous period’s level and requiring it to avoid recording ordinary losses for two consecutive periods, together with the possibility of repayment in full if the covenants are breached.