Risk of loan acceleration due to breach of syndicated loan financial covenants
First written in FY2026-H1. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The total amount of net assets presented in the net assets section of the consolidated balance sheet at the end of each consolidated fiscal year, after deducting subscription rights to shares, non-controlling interests and deferred hedge gains or losses, must be maintained at or above an amount equivalent to 75% of the corresponding amount presented in the consolidated balance sheet at the end of the immediately preceding consolidated fiscal year, rounded up to the nearest ¥100 million.」
We continued to disclose the syndicated loan financial covenant requiring consolidated and non-consolidated net assets to be maintained at or above 75% of the amount at the end of the immediately preceding fiscal year, together with the risk of loss of the benefit of time and full repayment upon a breach. - FY2026-H1First statedAnnual report
「We have entered into syndicated loan agreements with financial institutions to secure stable financing. These agreements contain certain financial covenants, and if we breach them, we may lose the benefit of time and be required to make immediate repayment in full, which could affect our operating results and other aspects of our business.」
We disclosed a new financial risk: syndicated loans are subject to financial covenants, including the maintenance of net assets, and a breach could result in a requirement to repay the loans in full.