Risk of Breaching Financial Covenants and Losing the Benefit of Time
First written in FY2024. 3 of 7 entries say "Mitigated", first in FY2026-H1. Latest entry: 2026-10-02.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Certain borrowings of ¥587,576 thousand, including long-term borrowings due within one year, are subject to financial covenants under which the benefit of time is lost if certain conditions concerning net assets, earnings and other matters are breached, and the Company is in breach of these covenants. The Company has not received notice at this time that the provisions resulting in the loss of the benefit of time will be applied.」
The breach of financial covenants continues, but the amount of borrowings subject to the breach decreased from the ¥852,036 thousand stated at the end of the previous fiscal year to ¥587,576 thousand. The explanation that no notice has been received regarding application of the provisions resulting in the loss of the benefit of time also continues. - 2026-04-03RestatedEarnings
「Although the company has not received notice from certain lending financial institutions that they intend to invoke provisions concerning the loss of the benefit of time with respect to certain borrowings as of the present time, the company is in breach of financial covenants.」
The company continued to explain that it was in breach of financial covenants but had not received notice that provisions concerning the loss of the benefit of time would be invoked. - FY2025The amount subject to financial covenant breaches changed to ¥852,036 thousandAnnual report
「Borrowings of ¥852,036 thousand from certain lending financial institutions are in breach of financial covenants, although the Company has not received notice at this time that provisions concerning the loss of the benefit of time will be applied.」
The breach of financial covenants continues, while the amount of borrowings subject to the breach changed from the previously stated ¥891,952 thousand to ¥852,036 thousand. The Company continues to explain that no notice has been received regarding application of the provisions resulting in the loss of the benefit of time. - FY2025-H1Borrowings subject to covenant breaches changed to ¥891,952 thousandAnnual report
「Certain borrowings of ¥891,952 thousand, including long-term borrowings due within one year, are subject to financial covenants under which the benefit of time is lost if certain conditions concerning net assets, earnings and other matters are breached; the Group breached these covenants as of the end of the previous consolidated fiscal year. The Company has not received notice at this time that the provisions resulting in the loss of the benefit of time will be applied.」
The Company states that certain borrowings totaling ¥891,952 thousand were in breach of financial covenants as of the end of the previous consolidated fiscal year. It continues to explain that no notice has been received regarding application of the provisions resulting in the loss of the benefit of time. - FY2024MaterialisedAnnual report
「Borrowings of ¥1,131,448 thousand from certain lending financial institutions are in breach of financial covenants, although the Company has not received notice at this time that provisions concerning the loss of the benefit of time will be applied.」
Borrowings of ¥1,131,448 thousand are in breach of financial covenants. The Company states that it has not received notice at this time that provisions concerning the loss of the benefit of time will be applied.