Risk of breaching financial covenants
First written in FY2016. 3 of 10 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Daikokuya Holdings moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group was able to complete the ¥3,500 million refinancing by entering into a standstill memorandum and the first amendment to the loan agreement in August 2025.」
In response to the financial covenant breach and failure to complete the refinancing that occurred in the previous fiscal year, the ¥3,500 million refinancing was completed following the standstill and amendment to the agreement. The financial covenants under the new agreement apply from the fiscal year ending March 2027. - FY2026-H1MitigatedAnnual report
「At the end of the fiscal year ended March 2025, the Company was in breach of financial covenants requiring consolidated ordinary income not to be negative and maintenance of a leverage ratio (term loan balance / EBITDA) of no more than 2.1. Following negotiations with the lending financial institution, the Company obtained consent dated 26 August 2025 that no rights relating to acceleration or enforcement of collateral would be exercised through 15 December 2025, and completed the refinancing of the short-term commitment line loan on 29 August 2025.」
The breach of financial covenants continued, but after obtaining a suspension from the financial institution of enforcement relating to acceleration and collateral enforcement, the Company completed the refinancing of the short-term commitment line. - FY2025WorsenedAnnual report
「At the end of the current consolidated fiscal year, 株式会社大黒屋 was in breach of financial covenants with respect to ¥4,350 million of its borrowings, partly because of the burden of upfront investments. As a result, the scheduled refinancing procedure for ¥3,500 million of the short-term borrowings included in the above borrowings was not completed, resulting in a payment default.」
The amount subject to the financial covenant breach was ¥4,350 million, and as a result the ¥3,500 million short-term borrowing was not refinanced as scheduled, resulting in a payment default. - FY2024MaterialisedAnnual report
「At the end of the current consolidated fiscal year, ¥4,590 million of the borrowings was in breach of financial covenants. However, the Group expected to obtain the financial institution's consent to a suspension of enforcement of its rights relating to acceleration.」
An actual breach of financial covenants occurred, involving borrowings of ¥4,590 million. The disclosure stated that the financial institution's consent to a suspension of enforcement rights was expected to be obtained. - FY2024-Q2Financial covenants reset under the refinancing agreementAnnual report
「The financial covenants require compliance with a gross leverage ratio (applicable only to the term loan), maintenance of ordinary income and maintenance of net assets. The negative covenants also include restrictions on dividends (within the scope of excess cash flow), investments and financing (within the same scope), an IPO, securities issuance, disposal of shares, changes in business purpose, opening new stores and other matters, as well as restrictions on material changes such as amendments to the articles of incorporation, mergers, company splits, share exchanges and share transfers.」
The refinancing agreement newly specified restrictions, in addition to leverage ratio, ordinary income and net asset maintenance requirements, concerning dividends, investments and financing, new store openings and other matters. - FY2022Decrease in breached amount; expected consent to suspension of enforcement rightsAnnual report
「At the end of the current consolidated fiscal year, ¥5,100 million of the borrowings was in breach of financial covenants. However, the Group expected to obtain the financial institution's consent to a suspension of enforcement of its rights relating to acceleration.」
The breach of financial covenants continued, but the borrowings subject to the breach decreased from ¥5,500 million in the previous fiscal year to ¥5,100 million. The disclosure stated that the financial institution's consent to a suspension of enforcement of rights relating to acceleration was expected to be obtained. - FY2021MaterialisedAnnual report
「At the end of the current consolidated fiscal year, ¥5,500 million of the borrowings was in breach of financial covenants. However, the Group had obtained the financial institution's consent to a suspension of enforcement of its rights relating to acceleration.」
An actual breach of financial covenants occurred with respect to ¥5,500 million of borrowings. The Group obtained the financial institution's consent to a suspension of enforcement of rights relating to acceleration. - FY2019WorsenedAnnual report
「The Company's borrowings during the current consolidated fiscal year, recorded on the consolidated balance sheet as long-term borrowings due for repayment within one year of ¥90 million and long-term borrowings of ¥765 million, were subject to financial covenants requiring, from the fiscal year ending March 2020 onward, the maintenance of EBITDA reported in the separate income statement of SPEEDLOAN FINANCE LIMITED for each fiscal year. In addition, from the fiscal year ended March 2019 onward, the Company was required to maintain consolidated net assets as reported on its consolidated balance sheet at the end of each fiscal year.」
In addition to the borrowings of 大黒屋 and SFL, the Company's own borrowings were made subject to financial covenants requiring the maintenance of SFL's EBITDA and consolidated net assets. No breach was disclosed. - FY2017WorsenedAnnual report
「The borrowings of SPEEDLOAN FINANCE LIMITED during the current consolidated fiscal year, recorded on the consolidated balance sheet as long-term borrowings due for repayment within one year of ¥1,395.400 million, were subject to financial covenants requiring the maintenance of EBITDA, LTV (collateral advance rate), financial liquidity and restrictions on capital expenditures.」
In addition to 大黒屋, SFL was disclosed as being subject to financial covenants concerning EBITDA, LTV, liquidity and capital expenditures, broadening the scope covered. No breach was disclosed. - FY2016First statedAnnual report
「The borrowings are subject to financial covenants, including a leverage ratio, debt service coverage ratio, maintenance of earnings and maintenance of net assets. Although none of these covenants had been breached by the end of the current consolidated fiscal year since the financing was obtained from the financial institution, a breach followed by enforcement of claims by the financial institution could have a material impact on the Group's financial condition.」
The disclosure states that multiple financial covenants were in place but had not been breached by the end of the current period.