Expected breach of financial covenants and uncertainty regarding going concern
First written in FY2018-Q3. 8 of 29 entries say "Restated". Latest entry: 2026-09-28.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- 2026-09-28AdvancedOccurring Fact
「From the fiscal year-end date of FY2027 onward, ordinary income or loss shown in the consolidated statements of income as of each fiscal year-end must not record a loss for 2 consecutive fiscal years.」
For borrowings subject to financial covenants, a ¥7.2 billion agreement was entered into, with specific maintenance conditions concerning ordinary income or loss and net assets from the end of FY2027 onward. The existing financial-covenant theme was made more specific through disclosure of the contractual terms. - FY2026MaterialisedAnnual report
「The Group had breached the financial covenants attached to its loan agreements with financial institutions as of the end of the current consolidated fiscal year. However, the breach was resolved by the date of submission of the annual securities report because the Group had entered into an amendment agreement with the financial institution regarding the revision of the financial covenants.」
Against a backdrop of deteriorating profitability in a gas-fired power generation project for Brazil, an actual breach of the financial covenants occurred at the end of the fiscal year. The Company states that it entered into an amendment agreement by the date of submission and resolved the breach. - 2026-05-14MaterialisedRevisions to the earnings forecastSuggests it is closing out
「As described in “1. Overview of Business Results, etc. (1) Overview of Business Results for the Current Fiscal Year,” the deterioration in the financial position caused by the deterioration in the economics of the Brazilian gas-fired power project meant that, at the end of the consolidated fiscal year, the Company was in breach of financial covenants attached to its borrowing agreements with financial institutions. However, by the date of publication of the earnings flash report for the fiscal year ended March 2026, the Company had obtained written approval from the relevant financial institutions to revise the financial covenants, thereby resolving the breach.」
A breach of financial covenants did occur, but was resolved after written approval was obtained from the financial institutions by the disclosure date. The canonical thread remains unchanged, with both the occurrence and resolution recorded. - FY2026-H1Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「Interim consolidated fiscal period (30 September 2025) Of the borrowings, ¥13,025 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants decreased from ¥13,300 million at the end of the previous consolidated fiscal year to ¥13,025 million. The Company states that no material events or conditions existed during the current interim consolidated fiscal period, but the financial covenants remain in place. - FY2025Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「Current consolidated fiscal year Of the borrowings, ¥13,300 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants decreased from ¥16,157 million in the previous fiscal year to ¥13,300 million. The financial covenants remain in place, but no material events or conditions have been disclosed. - FY2025-H1Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「Interim consolidated fiscal period (30 September 2024) Of the borrowings, ¥11,665 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants decreased from ¥16,157 million at the end of the previous consolidated fiscal year to ¥11,665 million. The Company continues to state that no material events or conditions exist. - FY2024Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「Current consolidated fiscal year Of the borrowings, ¥16,157 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants decreased from ¥17,041 million in the previous fiscal year to ¥16,157 million. The financial covenants remain in place, but the Company has not disclosed the existence of any material events or conditions. - FY2024-Q3Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first 3 quarters of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Third quarter of the current consolidated fiscal year (31 December 2023) Of the borrowings, ¥16,218 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants decreased from ¥17,041 million at the end of the previous consolidated fiscal year to ¥16,218 million, but the financial covenants remain in place. - FY2024-Q2Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first half of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Second quarter of the current consolidated fiscal year (30 September 2023) Of the borrowings, ¥16,474 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks or material events or conditions. Borrowings subject to financial covenants decreased from ¥17,041 million at the end of the previous consolidated fiscal year to ¥16,474 million, but the financial covenants remain in place. - FY2024-Q1Slight increase in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first quarter of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. First quarter of the current consolidated fiscal year (30 June 2023) Of the borrowings, ¥17,269 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants increased slightly from ¥17,041 million at the end of the previous consolidated fiscal year to ¥17,269 million. - FY2023Decrease in borrowings subject to financial covenantsAnnual report
「Current consolidated fiscal year Of the borrowings, ¥17,041 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants decreased from ¥17,548 million in the previous fiscal year to ¥17,041 million. The financial covenants remain in place, but exposure has decreased slightly. - FY2023-Q3Decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first 3 quarters of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Of the borrowings, ¥17,359 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants decreased slightly from ¥17,548 million at the end of the previous consolidated fiscal year to ¥17,359 million. - FY2023-Q2Slight decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first half of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Second quarter of the current consolidated fiscal year (30 September 2022) Of the borrowings, ¥17,754 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks or material events or conditions. Borrowings subject to financial covenants decreased slightly from ¥17,871 million in FY2023-Q1 to ¥17,754 million, but remained above ¥17,548 million at the end of the previous consolidated fiscal year. - FY2023-Q1WorsenedAnnual report
「First quarter of the current consolidated fiscal year (30 June 2022) Of the borrowings, ¥17,871 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
Borrowings subject to financial covenants increased from ¥17,548 million at the end of the previous consolidated fiscal year to ¥17,871 million. Although the Company denies the existence of material events or conditions, exposure to the financial covenants has increased. - FY2022-Q3WorsenedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Third quarter of the current consolidated fiscal year (31 December 2021) Of the borrowings, ¥14,661 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks or material events or conditions, while borrowings subject to financial covenants increased from ¥8,720 million at the end of the previous consolidated fiscal year to ¥14,661 million. Exposure to the financial covenants has increased. - FY2022-Q2Slight decrease in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first half of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Of the borrowings, ¥8,590 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company continues to state that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants decreased from ¥8,720 million at the end of the previous consolidated fiscal year to ¥8,590 million. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed.」
The Company continues to state that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants total ¥8,655 million, down from ¥8,720 million at the end of the previous consolidated fiscal year. - FY2021-Q3RestatedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Of the borrowings, ¥8,785 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company continues to state that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants total ¥8,785 million, changing from ¥8,480 million at the end of the previous consolidated fiscal year and ¥8,850 million in the previous quarter, but the financial covenants remain in place. - FY2021-Q2Increase in borrowings subject to financial covenants (no material events or conditions)Annual report
「During the first half of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed. Of the borrowings, ¥8,850 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Group.」
The Company states that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants increased from ¥8,480 million at the end of the previous consolidated fiscal year to ¥8,850 million. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning business conditions, accounting and other matters described in the quarterly securities report, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year. In addition, no material events or conditions existed.」
The Company continues to state that there have been no significant changes in its major risks and that no material events or conditions exist. Borrowings subject to financial covenants decreased from ¥848 million to ¥831.5 million, but there is no new disclosure regarding the elimination of the covenants or resolution of the breach. - FY2020-Q3RestatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the previous consolidated fiscal year, but by the end of the first quarter of the current consolidated fiscal year, it had reached an agreement to waive the application of those covenants. As a result, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants at the end of the previous consolidated fiscal year, the Company reached an agreement to waive their application by the end of the first quarter of the current fiscal year and continues to state that no significant doubt exists regarding the going-concern assumption. - FY2020-Q2RestatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the previous consolidated fiscal year, but by the end of the first quarter of the current consolidated fiscal year, it had reached an agreement to waive the application of those covenants. As a result, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants at the end of the previous consolidated fiscal year, the Company reached an agreement to waive their application by the end of the first quarter of the current fiscal year and continues to state that no significant doubt exists regarding the going-concern assumption. - FY2020-Q1RestatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the previous consolidated fiscal year, but by the end of the first quarter of the current consolidated fiscal year, it had reached an agreement to waive the application of those covenants. As a result, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants at the end of the previous consolidated fiscal year, the Company reached an agreement to waive their application by the end of the first quarter of the current fiscal year and continues to state that no significant doubt exists regarding the going-concern assumption. - FY2019MaterialisedAnnual report
「The Company recorded an operating loss for a second consecutive fiscal year and consequently breached the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the current consolidated fiscal year.」
The Company also breached its financial covenants at the end of the fiscal year ended March 2019. Meanwhile, it states that, as of the date of submission, it had reached an agreement with the financial institutions on waiving the application of the covenants through negotiations and had secured their support. - FY2019-Q3RestatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions in the previous consolidated fiscal year, but because it obtained waivers of the application of those covenants and entered into amendment agreements during the first quarter of the current consolidated fiscal year, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants in the previous consolidated fiscal year, the Company continues to state that no significant doubt exists regarding the going-concern assumption because it obtained waivers and entered into amendment agreements during the first quarter of the current consolidated fiscal year. - FY2019-Q2RestatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions in the previous consolidated fiscal year, but because it obtained waivers of the application of those covenants and entered into amendment agreements during the first quarter of the current consolidated fiscal year, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants in the previous consolidated fiscal year, the Company continues to state that no significant doubt exists regarding the going-concern assumption because it obtained waivers and entered into amendment agreements in the first quarter. - FY2019-Q1MitigatedAnnual report
「The Company had breached the financial covenants attached to its loan agreements and other arrangements with financial institutions in the previous consolidated fiscal year, but by the end of the first quarter of the current consolidated fiscal year, it had obtained waivers of the application of those covenants and entered into amendment agreements. As a result, no events or conditions existed that raised significant doubt about the going-concern assumption.」
Regarding the breach of financial covenants that occurred in the previous consolidated fiscal year, the Company had obtained waivers and entered into amendment agreements by the end of the first quarter of the current fiscal year. The Company states that no events or conditions existed that raised significant doubt about the going-concern assumption. - FY2018MaterialisedAnnual report
「As a result, the Company's financial position deteriorated significantly, and it breached the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the fiscal year. In addition, following negotiations with financial institutions regarding loan agreements, including syndicated loans and commitment lines, outstanding as of the end of the fiscal year, as of the date of submission of the annual securities report, the Company had obtained waivers of the application of the financial covenants and entered into amendment agreements for all contracts, thereby securing sufficient support from the financial institutions. Accordingly, the Company determined that no material uncertainty regarding the going-concern assumption existed.」
The expected breach of the financial covenants became an actual breach as of the end of the fiscal year. Meanwhile, the Company states that, as of the date of submission, it had obtained waivers and entered into amendment agreements for all contracts, thereby securing support from the financial institutions. - FY2018-Q3First statedAnnual report
「As a result, the Company's financial position deteriorated significantly, and it became likely that the Company would breach the financial covenants attached to its loan agreements and other arrangements with financial institutions as of the end of the fiscal year. Although circumstances exist that raise significant doubt about the going-concern assumption, the Company has determined that no material uncertainty regarding the going-concern assumption exists, as it is promoting measures to resolve these material events and conditions, as described in “2. Business Conditions, 3. Analysis of Financial Position, Operating Results and Cash Flows, (3) Business and Financial Issues to Be Addressed.” Of the borrowings, ¥12,561 million, including amounts due for repayment within 1 year, are subject to financial covenants relating to the financial position and operating results of the Company and its group.」
The Company first explicitly disclosed that it was likely to breach its financial covenants at the end of the fiscal year and that circumstances existed that raised significant doubt about the going-concern assumption, due to losses on a U.S.-bound ethylene production facility project. Meanwhile, the Company determined that no material uncertainty regarding the going-concern assumption existed because it was implementing response measures.