Financial Covenants in Loan Agreements and Liquidity
First written in FY2016. 5 of 6 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「Amount arranged: ¥4 billion; date agreement executed: 28 June 2024; commitment expiry: 30 June 2027; financial covenants, etc.: ① The amount of net assets shown in the consolidated and non-consolidated balance sheets at each fiscal year-end must be maintained at 75% or more of the amount of net assets shown in the consolidated and non-consolidated balance sheets at the fiscal year-end for September 2023. ② Ordinary income or loss shown in the consolidated and non-consolidated income statements at each fiscal year-end must not be a loss for 2 consecutive periods. Borrowings outstanding: ¥4 billion (as of 31 March 2026).」
For the ¥4 billion commitment line, the company reported an expiry date of 30 June 2027, financial covenants requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods, and borrowings outstanding of ¥4 billion at the end of March 2026. - FY2023RestatedAnnual report
「These agreements contain financial covenants requiring the amount of net assets shown in the consolidated and non-consolidated balance sheets at each fiscal year-end to be maintained at 75% or more of the amount of net assets shown in the consolidated and non-consolidated balance sheets at the base fiscal year-end, and requiring ordinary income or loss shown in the consolidated and non-consolidated income statements at each fiscal year-end not to be a loss for 2 consecutive periods.」
The company continues to maintain financial covenants requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods. - FY2020RestatedAnnual report
「These agreements contain financial covenants requiring the amount of net assets shown in the consolidated and non-consolidated balance sheets at each fiscal year-end to be maintained at 75% or more of the amount of net assets shown in the consolidated and non-consolidated balance sheets at the base fiscal year-end, and requiring ordinary income or loss shown in the consolidated and non-consolidated income statements at each fiscal year-end not to be a loss for 2 consecutive periods.」
The company continues to describe the financial covenants requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods. - FY2018RestatedAnnual report
「These agreements contain financial covenants requiring the amount of net assets shown in the consolidated and non-consolidated balance sheets at each fiscal year-end to be maintained at 75% or more of the amount of net assets shown in the consolidated and non-consolidated balance sheets at the base fiscal year-end, and requiring ordinary income or loss shown in the consolidated and non-consolidated income statements at each fiscal year-end not to be a loss for 2 consecutive periods.」
The company continues to describe the financial covenants requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods. - FY2017RestatedAnnual report
「These agreements contain financial covenants requiring the amount of net assets shown in the consolidated and non-consolidated balance sheets at each fiscal year-end to be maintained at 75% or more of the amount of net assets shown in the consolidated and non-consolidated balance sheets at the base fiscal year-end, and requiring ordinary income or loss shown in the consolidated and non-consolidated income statements at each fiscal year-end not to be a loss for 2 consecutive periods.」
The company continues to describe the financial covenants requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods. - FY2016First statedAnnual report
「If these conditions are breached, the relevant borrowings may have to be repaid in full and the agreements may be cancelled, potentially affecting the Group's operating results and financial position.」
The commitment line, term loan, and e-Noteless usage agreement contain conditions requiring net assets to be maintained at 75% or more and losses on ordinary income not to continue for 2 consecutive periods. Full repayment and cancellation of the agreements in the event of a breach are identified as risks.