Risk of Breaching Financial Covenants on Borrowings
First written in FY2023. 1 of 3 entries say "Worsened", first in FY2025-H1. Latest entry: FY2026.
44 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Although no financial covenant has been breached as of the filing date since the funds were obtained from the financial institution, if a breach of any covenant appears likely because of the Company’s performance, financial position, or other factors, the Company may lose the benefit of the term of the relevant borrowings and may be required to repay them in full.」
The Company continues to state that no financial covenants have been breached while disclosing the outstanding borrowings and the risk of accelerated repayment. - FY2025-H1WorsenedAnnual report
「Total borrowings ¥3,862,000 thousand Repayment date 31 October 2031 (7 years) Financial covenants ① The borrower’s consolidated net income must not be negative for 2 consecutive fiscal years, including the fiscal year ending March 2025 and each subsequent fiscal year. ② The total amount of net assets shown in the borrower’s consolidated balance sheet for the fiscal year ending March 2025 and each subsequent fiscal year must be maintained at 80% or more of the total amount of net assets shown in the borrower’s consolidated balance sheet for the immediately preceding fiscal year.」
The Company borrowed ¥3.862 billion for 7 years to fund the acquisition of ONE MEDICAL, subject to covenants concerning profit and net assets. No covenant breach was reported. - FY2023First statedAnnual report
「Some borrowings from financial institutions are subject to financial covenants. Although no covenant has been breached as of the filing date since the funds were obtained from those institutions, if a breach of any covenant becomes unavoidable because of the Company’s performance, financial position, or other factors, the Company may lose the benefit of the term of the relevant borrowings and may be required to repay them in full.」
The Company had no covenant breaches as of the filing date but discloses the risk of loss of the benefit of term and accelerated repayment if a breach occurs.