Borrowing Agreements with Financial Covenants
First written in FY2026-H1. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Denka 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
「Balance of debt at period-end: ¥94 billion; maturity: June 2027 to August 2030; collateral: unsecured; guarantee: unguaranteed. ① The amount of consolidated net assets reported under net assets on the consolidated balance sheet as of the end of each fiscal year and the second quarter, or as of the end of each fiscal year, must be maintained at not less than 75% of the amount in the same period of the previous year and not less than a specified amount. ② Ordinary income or loss reported in the consolidated statements of income for each fiscal year must not be a loss for 2 consecutive fiscal years.」
The period-end balance of borrowings subject to financial covenants was ¥94 billion, with covenants requiring the maintenance of net assets and avoidance of ordinary losses for 2 consecutive fiscal years. The disclosure, which had previously covered a single agreement, now presents the overall picture of the financial covenants by aggregating multiple agreements. - FY2026-H1First statedAnnual report
「We entered into a loan agreement with financial covenants. Principal amount: ¥20 billion; maturity date: 30 August 2030; collateral: unsecured; guarantee: unguaranteed. The amount of consolidated net assets reported under net assets on the consolidated balance sheet must be maintained at ¥231.2 billion or more as of the end of the second quarter of the fiscal year ending March 2026, and, from the fiscal year ending March 2026 onward, at not less than 75% of the amount in the same period of the previous year and not less than ¥231.2 billion as of the end of each fiscal year and the second quarter. For 2 consecutive fiscal years beginning with the fiscal year ending March 2026, ordinary income or loss reported in the consolidated statements of income for each fiscal year must not be a loss for 2 consecutive fiscal years.」
On 27 August 2025, entered into an unsecured and unguaranteed loan agreement with a principal amount of ¥20 billion and a maturity date of 30 August 2030. The agreement includes financial covenants concerning the absolute amount of net assets, the year-on-year net asset ratio and ordinary income or loss.