Risk Relating to Financial Covenants in Borrowing Agreements
First written in FY2023. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2025: 23 of 75 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Some of our borrowing agreements contain financial covenants relating to consolidated and non-consolidated net assets and ordinary profit or loss at each fiscal year-end. If we breach a financial covenant and the lending financial institution makes a demand, we may lose the benefit of time with respect to the relevant borrowings. If we become obligated to make lump-sum repayments, this may affect our group’s financial position.」
Continues to describe covenants relating to net assets and ordinary profit or loss and the risk of losing the benefit of time and being required to make lump-sum repayments. - FY2023First statedAnnual report
「Some of our borrowing agreements contain financial covenants relating to consolidated and non-consolidated net assets and ordinary profit or loss at each fiscal year-end. If we breach a financial covenant and the lending financial institution makes a demand, we may lose the benefit of time with respect to the relevant borrowings. If we become obligated to make lump-sum repayments, this may affect our group’s financial position.」
States that borrowing agreements include covenants requiring net assets of at least 75% and prohibiting ordinary losses for two consecutive periods, with possible loss of the benefit of time and lump-sum repayment if breached.