Risk of acceleration upon breach of financial covenants under a syndicated loan
First written in FY2024-Q3. 2 of 5 entries say "Restated". Latest entry: 2026-10-15.
13 other companies' latest entry also says "Advanced".
- 2026-10-15AdvancedEarnings
「The agreement contains the following financial covenants.」
Specific financial covenants concerning the maintenance of net assets and ordinary income and loss were disclosed for the long-term borrowing executed on 30 March 2026. - FY2027-H1New borrowing subject to financial covenants disclosedAnnual report
「With respect to the Company's borrowings, it entered into a loan agreement containing financial covenants dated 26 March 2026 and drew down the loan on 30 March 2026.」
The Company newly entered into a loan agreement containing financial covenants with a city bank and disclosed an outstanding loan balance of ¥292 million. From the fiscal year ending February 2027 onward, the conditions include maintaining net assets at no less than 75% of the amount at the end of the immediately preceding fiscal year and not recording ordinary losses for 2 consecutive fiscal years, among others. - FY2025RestatedAnnual report
「Our syndicated loan is subject to the following financial covenants: from the fiscal year ending February 2024 onward, consolidated and non-consolidated net assets and other amounts as of the end of each fiscal year must be maintained at no less than 75% of the corresponding amounts in the immediately preceding fiscal year, and ordinary profit or loss must not be a loss for 2 consecutive fiscal years.」
The syndicated loan’s covenants concerning the maintenance of net assets and ordinary profit or loss continue to be disclosed. - FY2024RestatedAnnual report
「Our syndicated loan is subject to the following financial covenants: from the fiscal year ending February 2024 onward, consolidated and non-consolidated net assets and other amounts as of the end of each fiscal year must be maintained at no less than 75% of the corresponding amounts in the immediately preceding fiscal year, and ordinary profit or loss must not be a loss for 2 consecutive fiscal years.」
The syndicated loan’s covenants concerning the maintenance of net assets and ordinary profit or loss were disclosed in detail. The risk of losing the benefit of time upon a breach continues. - FY2024-Q3First statedAnnual report
「However, the borrowing agreement contains financial covenants (see note), and if we breach those covenants, we may lose the benefit of time under the agreement upon a request from the lenders.」
For the syndicated loan entered into in October 2023, financial covenants concerning the maintenance of net assets and ordinary profit or loss were disclosed as new risks. From the fiscal year ending February 2024 onward, the conditions require consolidated and non-consolidated net assets and other amounts to be maintained at no less than 75% of the corresponding amounts in the immediately preceding fiscal year, and ordinary profit or loss not to be a loss for 2 consecutive fiscal years.