Acceleration Following Breach of Financial Covenants
First written in FY2022. 2 of 4 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2026.
Lifedrink Company moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
44 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Company had not breached any financial covenants as of the end of the consolidated fiscal year under review.」
Financial covenant risks continue to be disclosed, but no breach had occurred as of the end of the consolidated fiscal year under review. - FY2024WorsenedAnnual report
「Certain borrowings from financial institutions are subject to financial covenants requiring the Company to maintain its net assets and ordinary income or loss, as reported in its non-consolidated financial statements, at specified levels. If these covenants are breached, the Company may be required to repay the relevant borrowings in full.」
Borrowings subject to financial covenants expanded due to borrowings for the new plant and other financing. The covenants had not been breached as of the end of the fiscal year ended March 2024. - FY2024-Q1WorsenedAnnual report
「Financial covenants: (1) to maintain, at the end of the fiscal year ending March 2023 and each subsequent fiscal year, total net assets shown in the balance sheet at an amount equal to or greater than 75% of total net assets shown in the balance sheet at the end of the immediately preceding fiscal year; and (2) from the fiscal year ending March 2023 onward, not to incur an ordinary loss shown in the income statement for 2 consecutive periods.」
The ¥8,200 million borrowing agreement for the new plant also includes financial covenants requiring net assets to be maintained at 75% or more and ordinary losses to be avoided for 2 consecutive periods, indicating that new financing subject to these covenants has taken concrete form. - FY2022First statedAnnual report
「The principal financial covenants are to maintain total net assets at an amount equal to or greater than 75% of the corresponding amount at the end of the immediately preceding fiscal year and not to incur an ordinary loss for 2 consecutive periods. If these covenants are breached, the Company may be required to repay the relevant borrowings in full.」
Financial covenants for syndicated loans and other borrowings require maintaining net assets at 75% or more and avoiding ordinary losses for 2 consecutive periods. The covenants had not been breached as of the fiscal year-end.