Risk of Full Repayment of Borrowings upon Breach of Financial Covenants
First written in FY2017-Q1. 8 of 28 entries say "Restated". Latest entry: 2026-07-24.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- 2026-07-24MitigatedTreasury Stock
「This transaction is being carried out to reduce the dividend burden on the Class A preferred shares, among other purposes, as the Group’s solid performance since the issuance of these shares has strengthened and maintained its financial base and provided visibility into its cash flow.」
LERZ stated that it would acquire 2,000 Class A preferred shares for a total of ¥2,239,253,918 and cancel all of the acquired shares. Measures concerning the Class A preferred shares, which were subject to financial covenants, have taken concrete form in the reduction of the dividend burden and improved visibility into cash flow. The acquisition and cancellation are scheduled for 31 July 2026; the disclosure does not state that the risk of lump-sum repayment of LERZ’s long-term borrowings has been eliminated. - FY2026-H1WorsenedAnnual report
「(3) Financial covenants apply to ¥1,780 million of LERZ Co., Ltd.'s long-term borrowings due for repayment within 1 year and ¥7,120 million of its long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request. (4) Financial covenants apply to ¥2,000 million of Class A preferred shares of LERZ Co., Ltd. If these covenants are breached, the shares may be subject to full redemption at the mezzanine investors' request.」
In addition to the company's existing borrowings, the disclosure now covers LERZ Co., Ltd.'s total long-term borrowings of ¥8.8 billion and ¥2 billion of Class A preferred shares, expanding the scope of the disclosed risk of full repayment or full redemption upon a breach of financial covenants. - FY2025-H1Semiannual update of financial covenantsAnnual report
「(1) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥360 million of long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request.」
The long-term borrowings subject to financial covenants were updated to ¥160 million due for repayment within 1 year and ¥360 million due thereafter. The disclosure continues to state the possibility of full repayment or an increase in the applicable interest rate. - FY2024-Q3Quarterly update of financial covenantsAnnual report
「(1) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥480 million of long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request.」
The long-term borrowings subject to financial covenants were updated to ¥160 million due for repayment within 1 year and ¥480 million due thereafter. The disclosure continues to state that a breach may result in full repayment, or an increase in the applicable interest rate and full repayment. - FY2024-Q2Semiannual update of financial covenantsAnnual report
「(1) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥520 million of long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request. (2) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥520 million of long-term borrowings. If these covenants are breached, the applicable interest rate may be increased or the borrowings may be subject to full repayment at the lender's request.」
The long-term borrowings subject to financial covenants were updated to ¥160 million due for repayment within 1 year and ¥520 million due thereafter. The disclosure states that a breach may result in full repayment, or an increase in the applicable interest rate and full repayment. - FY2024-Q1Quarterly update of financial covenantsAnnual report
「(1) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥560 million of long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request. (2) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥560 million of long-term borrowings. If these covenants are breached, the applicable interest rate may be increased or the borrowings may be subject to full repayment at the lender's request.」
The amounts of borrowings subject to financial covenants and the relevant conditions were updated as of the quarter-end. In addition to conditions relating to net assets, ordinary profit and the repayment period, among others, the disclosure states that a breach may result in an increase in the applicable interest rate or full repayment. - FY2023-Q3Quarterly update of financial covenantsAnnual report
「(1) Financial covenants apply to ¥160 million of long-term borrowings due for repayment within 1 year and ¥640 million of long-term borrowings. If these covenants are breached, the borrowings may be subject to full repayment at the lender's request.」
The disclosure covers ¥160 million of long-term borrowings due for repayment within 1 year and ¥640 million of long-term borrowings subject to financial covenants, and additionally presents conditions relating to net assets, ordinary profit and the repayment period, among others. - FY2023-Q2Semiannual update of financial covenantsAnnual report
「Financial covenants apply to short-term borrowings of ¥1,808.785 million. If these covenants are breached, the lender may require a review of transaction terms, including the benchmark interest rate, at the lender's request.」
The amount of short-term borrowings subject to financial covenants was updated to ¥1,808.785 million. The disclosure states that a breach may result in a request to review transaction terms, including the benchmark interest rate. - FY2023-Q1ReframedAnnual report
「Financial covenants apply to short-term borrowings of ¥1,245.9 million. If these covenants are breached, the lender may require a review of transaction terms, including the benchmark interest rate, at the lender's request.」
After the previously stated risk of full repayment or full redemption upon a breach of financial covenants temporarily disappeared from the disclosure, the risk associated with the ¥1,245.9 million in short-term borrowings was reorganized as the possibility that the lender may require a review of transaction terms, including the benchmark interest rate, in the event of a breach. - FY2022DroppedAnnual report
「The company intends to repay interest-bearing debt using cash flow generated by the business activities of the company and its consolidated subsidiaries.」
In the disclosure of business and other risks and borrowings, the previously stated risk of full repayment or full redemption if financial covenants were breached cannot be found. - FY2021RestatedAnnual report
「Financial covenants apply to bonds of ¥1,200.000 million due for redemption within 1 year. If the covenants are breached, the bonds may be subject to accelerated redemption at the request of the bond underwriters.」
The financial covenants relating to アルク ceased to apply when it was excluded from consolidation, while the company continues to disclose the conditions requiring maintenance of net assets and net interest-bearing debt of ¥3 billion or less for its bonds, as well as the risk of accelerated redemption. - FY2021-Q3SoftenedAnnual report
「In addition, because all shares held in 株式会社アルク, which was a consolidated subsidiary, were sold in November 2020, among other reasons, the section entitled “(4) Other ③ Financial Covenants of 株式会社アルク” included in the securities report for the previous fiscal year has ceased to apply.」
The financial covenant risk relating to アルク ceased to apply following its sale. The company continues to disclose the financial covenants applicable to its bonds and borrowings, as well as the possibility of accelerated redemption or repayment. - FY2021-Q1Quarterly update of financial covenantsAnnual report
「(3) Financial covenants apply to ¥43.750 million of long-term borrowings of 株式会社アルク due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The amount of アルク's borrowings subject to financial covenants was updated to ¥43.750 million as of the quarter-end. Regarding the covenant breach at the end of the previous consolidated fiscal year, the agreement not to exercise the right to declare the benefit of time lost remains in place. - FY2020MaterialisedAnnual report
「At the end of the current consolidated fiscal year, 株式会社アルク had breached the financial covenants in (3) ① and (4) ① above. However, the company had obtained an agreement not to exercise the right to declare the benefit of time lost.」
アルク actually breached the financial covenant concerning maintenance of net assets. However, the company obtained an agreement not to exercise the right to declare the benefit of time lost. - FY2020-Q3Quarterly update of financial covenantsAnnual report
「Financial covenants apply to ¥131.250 million of long-term borrowings of 株式会社アルク due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request. Financial covenants also apply to ¥56.250 million of long-term borrowings of 株式会社アルク due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The amounts of アルク's borrowings subject to financial covenants were updated to ¥131.250 million and ¥56.250 million. There is no indication that a breach or accelerated repayment has occurred. - FY2020-Q2Quarterly update of financial covenantsAnnual report
「Financial covenants apply to ¥175.000 million of long-term borrowings of 株式会社アルク due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The company disclosed that ¥175.000 million and ¥75.000 million of アルク's long-term borrowings due for repayment within 1 year are subject to financial covenants. There is no indication that a breach or accelerated repayment has occurred. - FY2020-Q1Quarterly update of financial covenantsAnnual report
「Financial covenants apply to long-term borrowings of 株式会社アルク totaling ¥218.750 million, including ¥175.000 million of long-term borrowings due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
アルク's long-term borrowings subject to financial covenants were disclosed as ¥218.750 million and ¥93.750 million under a separate agreement, down from the amounts at the end of the previous fiscal year. There is no indication that a breach or accelerated repayment has occurred. - FY2019Annual update of financial covenantsAnnual report
「Financial covenants apply to long-term borrowings of 株式会社アルク totaling ¥262.500 million, including ¥175.000 million of long-term borrowings due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
For アルク, the company disclosed ¥262.500 million in long-term borrowings subject to financial covenants and ¥131.250 million under a separate agreement. The conditions concerning maintenance of net assets and ordinary profit or loss, and the possibility of accelerated repayment if breached, remain in place, but there is no indication that a breach or accelerated repayment has occurred. - FY2019-Q3WorsenedAnnual report
「(3) Financial covenants apply to long-term borrowings of 株式会社アルク totaling ¥350.000 million, including ¥175.000 million of long-term borrowings due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The company disclosed an additional ¥150.000 million, in addition to ¥350.000 million, in long-term borrowings of アルク subject to financial covenants, bringing the total borrowings covered to ¥500.000 million. The borrowings are subject to conditions concerning maintenance of net assets and ordinary profit or loss, but there is no indication that a breach or accelerated repayment has occurred. - FY2019-Q2WorsenedAnnual report
「Financial covenants apply to long-term borrowings of 株式会社アルク totaling ¥393.750 million, including ¥175.000 million of long-term borrowings due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
Following the acquisition of アルク as a subsidiary, the company newly disclosed that アルク's long-term borrowings are subject to financial covenants concerning maintenance of net assets and ordinary profit or loss, expanding the scope of the risk of accelerated repayment if the covenants are breached. There is no indication that a breach or accelerated repayment has occurred. - FY2019-Q1RestatedAnnual report
「Financial covenants apply to bonds of ¥1,200.000 million. If the covenants are breached, the bonds may be subject to accelerated redemption at the request of the bond underwriters.」
The company continues to disclose financial covenants requiring net assets to be maintained at 75% or more of the level at the base date and net interest-bearing debt to be maintained at ¥3 billion or less, as well as the risk of accelerated redemption if the covenants are breached. This disclosure also indicates that the same covenants apply to long-term borrowings of ¥500.000 million. - FY2018-Q3RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥1,500.000 million and bonds of ¥1,200.000 million. If the covenants are breached, the borrowings may be subject to accelerated repayment and the bonds to accelerated redemption at the request of the lenders or bond underwriters.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment or redemption if they are breached. - FY2018-Q2RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥1,500.000 million and bonds of ¥1,200.000 million. If the covenants are breached, the borrowings may be subject to accelerated repayment and the bonds to accelerated redemption at the request of the lenders or bond underwriters.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment or redemption if they are breached. The conditions include maintenance of net assets and net interest-bearing debt of ¥3 billion or less, but there is no indication that a breach has occurred. - FY2018-Q1RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥900.000 million and bonds of ¥1,200.000 million. If the covenants are breached, the borrowings may be subject to accelerated repayment and the bonds to accelerated redemption at the request of the lenders or bond underwriters.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment or redemption if they are breached. The covenants require maintenance of net assets and net interest-bearing debt of ¥3 billion or less, and there is no indication that a breach has occurred. - FY2017RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥300.000 million and bonds of ¥1,200.000 million. If the covenants are breached, the borrowings may be subject to accelerated repayment and the bonds to accelerated redemption at the request of the lenders or bond underwriters.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment or redemption if they are breached, including in its full-year disclosure. The conditions include maintenance of net assets and net interest-bearing debt of ¥3 billion or less, but there is no indication that a breach has occurred. - FY2017-Q3RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥900.000 million and long-term borrowings of ¥41.666 million due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment if they are breached. The covenants include ordinary profit or loss, maintenance of net assets and net interest-bearing debt of ¥3 billion or less, but there is no indication that a breach or accelerated repayment has occurred. - FY2017-Q2RestatedAnnual report
「Financial covenants apply to short-term borrowings of ¥1,240.000 million and long-term borrowings of ¥83.333 million due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The company continues to disclose the financial covenants and the possibility of accelerated repayment if they are breached. The amount of the borrowings covered has been updated in this disclosure, but there is no indication that a breach or accelerated repayment has occurred. - FY2017-Q1First statedAnnual report
「Financial covenants apply to short-term borrowings of ¥990.000 million and long-term borrowings of ¥125.000 million due for repayment within 1 year. If the covenants are breached, the borrowings may be subject to accelerated repayment at the lenders' request.」
The company discloses financial covenants, including ordinary profit or loss, maintenance of net assets, and net interest-bearing debt of ¥3 billion or less. There is no indication that a breach or accelerated repayment has occurred.