Risk of accelerated repayment of borrowings following a breach of financial covenants
First written in FY2024. 2 of 4 entries say "Worsened", first in FY2026-H1. Latest entry: FY2026.
JALCO Holdings moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
17 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Long-term borrowings, including the portion of long-term borrowings due for repayment within 1 year, totaling ¥3,979.900 million are subject to financial covenants, and the borrowings may be required to be repaid in full if any of the following covenants are breached.」
¥3.979 billion in borrowings subject to financial covenants was disclosed, with additional conditions requiring the avoidance of ordinary losses for 2 consecutive fiscal years and the maintenance of net assets at 80% or more. No breach of covenants or accelerated repayment was reported. - FY2026-H1WorsenedAnnual report
「(i) Principal amount of debt: ¥2,000.000 million. (i) The borrower must not record ordinary losses for 2 consecutive fiscal years in the consolidated income statement as of the end of each fiscal year following the date of execution of this agreement. (ii) The borrower must maintain total consolidated net assets as of the end of each fiscal year and as of the end of the second-quarter settlement period following the date of execution of this agreement at 80% or more of the amount for the most recent fiscal year.」
The ¥2 billion loan agreement executed on 26 June 2025 includes financial covenants requiring the borrower to avoid ordinary losses for 2 consecutive fiscal years and maintain net assets at 80% or more of the amount for the most recent fiscal year. No breach of the covenants or repayment in full is stated. - FY2025Changes in the composition of borrowings subject to financial covenantsAnnual report
「Current consolidated fiscal year (31 March 2025) (1) Long-term borrowings, including the portion of long-term borrowings due for repayment within 1 year, totaling ¥400.000 million are subject to financial covenants, and the borrowings may be required to be repaid in full if any of the following covenants are breached.」
For borrowings subject to financial covenants, the composition of the covered borrowings changed, with conditions requiring the maintenance of net assets and avoidance of deficits in ordinary profit or loss and net income, and the balances and conditions of multiple agreements were disclosed. - FY2024First statedAnnual report
「Long-term borrowings, including the portion of long-term borrowings due for repayment within 1 year, totaling ¥3,871.000 million are subject to financial covenants, and the borrowings may be required to be repaid in full if any of the following covenants are breached.」
The Company disclosed as a new risk that long-term borrowings are subject to financial covenants concerning net assets and ordinary profit or loss, among other matters, and may become subject to repayment in full if the covenants are breached.