Financial covenant risk associated with borrowings subject to financial covenants
First written in FY2026-H1. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
No.1 moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
17 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「26 September 2025 Commercial bank ¥730 million 30 September 2032 None Maintain a DSCR of at least 1.1x from the fiscal year ending February 2026 onward.」
The document states that, in addition to the existing ¥1,000 million borrowing subject to financial covenants, the ¥730 million borrowing is subject to a financial covenant requiring a DSCR of at least 1.1x. - FY2026-H1First statedAnnual report
「26 June 2025 Commercial bank ¥1,000 million 30 June 2035 None (1) From the fiscal year ending February 2026 onward, consolidated ordinary profit or loss as presented in the consolidated statements of income for each fiscal year must not be a loss for 2 consecutive periods. (2) From the fiscal year ending February 2026 onward, consolidated net assets as presented in the net assets section of the consolidated balance sheet at each fiscal year-end must be at least 80% of the amount presented in the net assets section of the consolidated balance sheet at the end of the immediately preceding fiscal year.」
On 26 June 2025, the Company entered into a loan agreement with an outstanding balance of ¥1,000 million and a repayment date of 30 June 2035, subject to financial covenants requiring the avoidance of ordinary losses for 2 consecutive periods and maintenance of net assets at 80% or more.