Risk of accelerated repayment of borrowings following a breach of financial covenants
First written in FY2025-H1. 1 of 2 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Some of the loan agreements we have entered into with financial institutions contain financial covenants.」
The company continues to disclose as an important contract that some borrowing agreements contain financial covenants. - FY2025-H1First statedAnnual report
「If any covenant is breached, the relevant borrowings may be subject to lump-sum repayment at the lender’s request. The borrower must maintain cash and deposits of at least ¥500 million at the end of each fiscal year. At the end of each quarter, the borrower must maintain a balance in this deposit account equal to at least 25% of the borrower’s total cash and deposits at that quarter-end. No financial covenant had been breached as of the end of the current interim accounting period.」
Although the business-risk section states that there are no new risks, the notes to the borrowing agreements newly identified for tracking financial covenants including cash and deposits of at least ¥500 million and the possibility of lump-sum repayment upon breach.