Risk Related to Funding Conditions and Breach of Financial Covenants
First written in FY2021. 8 of 15 entries say "Worsened", first in FY2023-Q2. Latest entry: 2026-09-09.
GAtechnologies moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
22 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥9,395 million as of the end of the previous consolidated fiscal year and ¥13,445 million as of the end of the interim consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants increased from ¥9,395 million to ¥13,445 million, increasing the borrowings exposed to repayment demands and restrictions on the use of commitment lines in the event of a breach. - FY2025-H1MitigatedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥5,225 million as of the end of the previous consolidated fiscal year and ¥4,935 million as of the end of the interim consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants decreased from ¥5,225 million to ¥4,935 million. The risks of repayment demands and restrictions on the use of commitment lines in the event of a covenant breach remain. - FY2024WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥3,551 million as of the end of the previous consolidated fiscal year and ¥5,225 million as of the end of the current consolidated fiscal year.」
Borrowings subject to financial covenants increased from ¥3,551 million to ¥5,225 million, increasing the borrowings exposed to repayment demands and restrictions on the use of commitment lines in the event of a breach. - FY2024-Q2WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥3,551 million as of the end of the previous consolidated fiscal year and ¥5,214 million as of the end of the second quarter of the current consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants increased from ¥3,551 million to ¥5,214 million, increasing the borrowings exposed to repayment demands and restrictions on the use of commitment lines in the event of a covenant breach. - FY2024-Q1WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥3,551 million as of the end of the previous consolidated fiscal year and ¥5,669 million as of the end of the first quarter of the current consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants increased from ¥3,551 million to ¥5,669 million, increasing the borrowings exposed to repayment demands and restrictions on the use of commitment lines in the event of a covenant breach. - FY2023-Q3WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥2,493 million as of the end of the previous consolidated fiscal year and ¥4,174 million as of the end of the third quarter of the current consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants increased from ¥2,493 million at the end of the previous consolidated fiscal year to ¥4,174 million, increasing the risk of repayment demands and restrictions on the use of commitment lines in the event of a covenant breach. - FY2023-Q2WorsenedAnnual report
「The borrowings subject to these financial covenants had outstanding balances of ¥2,493 million as of the end of the previous consolidated fiscal year and ¥4,206 million as of the end of the second quarter of the current consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines.」
Borrowings subject to financial covenants increased from ¥2,493 million at the end of the previous consolidated fiscal year to ¥4,206 million, increasing the risk of repayment demands and restrictions on the use of commitment lines in the event of a covenant breach. - FY2023-Q1MitigatedAnnual report
「Of these agreements, borrowings subject to financial covenants had outstanding balances of ¥2,493 million as of the end of the previous consolidated fiscal year and ¥2,281 million as of the end of the first quarter of the current consolidated fiscal year.」
Borrowings subject to financial covenants decreased from ¥2,493 million at the end of the previous consolidated fiscal year to ¥2,281 million. The financial covenants relating to operating income and net assets remain in place. - FY2022MitigatedAnnual report
「Of these agreements, borrowings subject to financial covenants had outstanding balances of ¥2,448 million as of the transition date, ¥3,225 million as of the end of the previous consolidated fiscal year, and ¥2,493 million as of the end of the current consolidated fiscal year.」
Borrowings subject to financial covenants decreased from ¥3,225 million at the end of the previous consolidated fiscal year to ¥2,493 million. The covenants themselves remain in place. - FY2022-Q3Further Decrease in Borrowings Subject to Financial CovenantsAnnual report
「Of these agreements, borrowings subject to financial covenants had outstanding balances of ¥2,448 million as of the transition date, ¥3,225 million as of the end of the previous consolidated fiscal year, and ¥2,704 million as of the end of the third quarter of the current consolidated fiscal year.」
Borrowings subject to financial covenants decreased from ¥3,225 million at the end of the previous consolidated fiscal year to ¥2,704 million at the end of the third quarter. - FY2022-Q2Decrease in Borrowings Subject to Financial CovenantsAnnual report
「Of these agreements, borrowings subject to financial covenants had outstanding balances of ¥2,448 million as of the transition date, ¥3,225 million as of the end of the previous consolidated fiscal year, and ¥2,915 million as of the end of the second quarter of the current consolidated fiscal year.」
The company disclosed that borrowings subject to financial covenants decreased from ¥3,225 million at the end of the previous consolidated fiscal year to ¥2,915 million at the end of the second quarter. - FY2022-Q1Specification of Financial CovenantsAnnual report
「Of these agreements, borrowings subject to financial covenants had outstanding balances of ¥2,448 million as of the transition date, ¥3,225 million as of the end of the previous consolidated fiscal year, and ¥3,086 million as of the end of the first quarter of the current consolidated fiscal year. If a covenant is breached, the lenders may demand repayment of the relevant borrowings, and the Company may become unable to use its commitment lines. The principal financial covenants are as follows: ① Consolidated operating income must not be negative for 2 consecutive fiscal years. ② Consolidated net assets must be maintained at ¥7.1 billion or more and at 75% or more of net assets as of the end of the most recent fiscal year.」
Regarding funding environment and covenant breach risks, the company disclosed the balance of the borrowings concerned and specific financial covenants relating to operating income and net assets. - FY2021First statedAnnual report
「Factors such as an economic downturn, deterioration in financial markets, rising interest rates, a decline in the creditworthiness of the Group or a downgrade in its credit ratings, and deterioration in business performance and the business environment may prevent the Group from raising funds promptly and on terms it considers desirable. In addition, some of the borrowings and other financing from the relevant financial institutions are subject to covenants (financial covenants). If an event occurs that breaches a covenant, the Company may lose the benefit of time with respect to the relevant debt, which could affect its financial position.」
The company first systematically identified deterioration in funding terms and loss of the benefit of time due to covenant breaches as major risks associated with financing through borrowings, bonds and other sources.