Financial Covenant Risk Associated with Borrowings Related to the Acquisition of TOTOKU
First written in FY2026-H1. 2 of 3 entries say "Restated". Latest entry: FY2026.
44 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Principal amount of debt: ¥17.5 billion; repayment date: 31 March 2032. The following financial covenants apply. If any of these covenants is breached, the borrower may lose the benefit of time.」
The annual report also confirms the term loan agreement of ＴＯＴＯＫＵ, the joint and several guarantee by ＳＷＣＣ, and financial covenants requiring net assets to be maintained at no less than 75% of the previous year's level and ordinary losses to be avoided for two consecutive fiscal years. - 2026-05-28RestatedGeneral Meetings of Shareholders
「The amount of guarantee obligations for 株式会社ＴＯＴＯＫＵ was ¥15,001 million.」
Guarantee obligations of ¥15,001 million were disclosed for borrowings by ＴＯＴＯＫＵ. There was no statement that a financial covenant had been breached or that a loss of benefit of time had occurred. - FY2026-H1First statedAnnual report
「Principal amount of debt: ¥17.5 billion Repayment date: 31 March 2032 The following financial covenants apply. If any of these covenants is breached, the borrower may lose the benefit of time. ① The amount of net assets in the standalone balance sheet at the end of each fiscal year from the fiscal year ending March 2026 onward must be maintained at no less than 75% of the amount in the same period of the previous year. ② Ordinary profit or loss shown in the borrower's standalone income statement for each fiscal year from the fiscal year ending March 2026 onward must not be a loss for two consecutive fiscal years. However, to the extent deducted in calculating ordinary profit or loss, amortisation of goodwill, amortisation of intangible assets, acquisition-related expenses and other expenses, and other temporary expenses agreed between the lenders and the borrower shall be added back to ordinary profit or loss. ③ The amount of net assets in the guarantor's consolidated balance sheet at the end of each fiscal year from the fiscal year ending March 2026 onward must be maintained at no less than 75% of the amount in the same period of the previous year. ④ Ordinary profit or loss shown in the guarantor's consolidated income statement for each fiscal year from the fiscal year ending March 2026 onward must not be a loss for two consecutive fiscal years.」
ＴＯＴＯＫＵ entered into a ¥17.5 billion term loan agreement on 12 May 2025, with ＳＷＣＣ acting as joint and several guarantor. The Company newly disclosed that a breach of financial covenants, including maintaining net assets at no less than 75% of the previous year's level and avoiding ordinary losses for two consecutive fiscal years, could result in the loss of the benefit of time.