Financial Covenants Associated with Borrowings for Acquisition Funding
First written in FY2024-Q3. 1 of 2 entries say "Reframed", first in FY2025. Latest entry: FY2025.
coconala moved to the "Worse" side of this theme in 2025, 8 years after the typical company in this theme (2017).
0 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「The following financial covenants apply, and if they are breached and the lenders make a demand, the borrower will lose the benefit of time: ① from the fiscal year ending August 2024 until repayment, the interest coverage ratio must not fall to 1 or below; ② net income must not be negative for both the final fiscal year and the immediately preceding fiscal year; and ③ liabilities must not exceed assets in the final fiscal year.」
The specific conditions under the current agreement's financial covenants for borrowings to fund acquisitions have been disclosed. They differ from the previously stated conditions requiring adjusted consolidated ordinary profit and net assets to be maintained at 75%. - FY2024-Q3First statedAnnual report
「With respect to the figures in the financial reports as of the end of each fiscal year from the fiscal year ending August 2024 onward, based on the full-year results only: ① adjusted consolidated ordinary profit must not be a loss for 2 consecutive fiscal years; and ② total consolidated net assets must be maintained at 75% or more of the total consolidated net assets as of the end of the fiscal year ended August 2023 and the immediately preceding fiscal year.」
This is the first disclosure that the ¥1,260 million borrowing agreement to fund the acquisition of Anne Consulting Co., Ltd. and other companies includes financial covenants concerning adjusted consolidated ordinary profit and consolidated net assets.