Financial Covenants in Borrowing Agreements and Liquidity Risk
First written in FY2022-Q3. 4 of 12 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2026.
Miahelsa Holdings moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The total overdraft limit and commitment line facilities amounted to ¥3,300 million, outstanding borrowings were ¥3,300 million, and the available amount was nil.」
Against total facilities of ¥3,300 million, outstanding borrowings increased from ¥1,000 million at the end of the previous fiscal year to ¥3,300 million, eliminating the undrawn amount. Financial covenants remain in place, but no covenant breach is reported. - FY2026-H1MitigatedAnnual report
「Total overdraft limit and commitment line facilities ¥3,300 million; outstanding borrowings ¥800 million; available amount ¥2,500 million」
The total facilities remained at ¥3,300 million, while outstanding borrowings declined from ¥1,000 million at the end of the previous consolidated fiscal year to ¥800 million, increasing the undrawn amount to ¥2,500 million. Financial covenants remain in place. - FY2025MitigatedAnnual report
「The total overdraft limit and commitment line facilities amounted to ¥3,300 million, outstanding borrowings were ¥1,000 million, and the available amount was ¥2,300 million.」
The total facilities remained at ¥3,300 million, while outstanding borrowings declined from ¥1,620 million at the end of the previous fiscal year to ¥1,000 million, increasing the available amount. - FY2025-H1MitigatedAnnual report
「The total overdraft limit and commitment line facilities amounted to ¥3,300 million, outstanding borrowings were ¥1,500 million, and the available amount was ¥1,800 million.」
The total facilities remained unchanged at ¥3,300 million from the end of the previous consolidated fiscal year, while outstanding borrowings declined from ¥1,620 million to ¥1,500 million, resulting in an available amount of ¥1,800 million. Financial covenants remain in place. - FY2024-Q3Expansion of facilities and decline in outstanding borrowingsAnnual report
「Total overdraft limit and commitment line facilities ¥3,300 million Outstanding borrowings ¥1,790 million Available amount ¥1,510 million」
The total amount of overdraft and commitment line facilities increased to ¥3,300 million, and outstanding borrowings were ¥1,790 million. Financial covenants remain in place, and the filing does not state that any covenant breach has occurred. - FY2024-Q1MitigatedAnnual report
「Total overdraft limit and commitment line facilities ¥2,850 million; outstanding borrowings ¥1,440 million」
The total facilities remained unchanged at ¥2.85 billion from the end of the previous consolidated fiscal year, while outstanding borrowings declined from ¥1.89 billion to ¥1.44 billion. Financial covenants remain in place. - FY2023-Q3WorsenedAnnual report
「Total overdraft limit and commitment line facilities ¥2,850 million Outstanding borrowings ¥1,740 million」
The total amount of overdraft and commitment line facilities increased from ¥2.7 billion at the end of the previous consolidated fiscal year to ¥2.85 billion, while outstanding borrowings increased from ¥1.46 billion to ¥1.74 billion. The outstanding borrowings subject to financial covenants are also disclosed. - FY2023-Q2RestatedAnnual report
「Total overdraft limit and commitment line facilities ¥2,700 million Outstanding borrowings ¥1,490 million The following financial covenants apply to the above commitment line facilities, which had an outstanding balance of ¥200 million at the end of the second quarter of the current consolidated fiscal year.」
The company continues to disclose its overdraft and commitment line agreements and related financial covenants. The total amount is ¥2.7 billion and outstanding borrowings are ¥1.49 billion. The filing does not state that any covenant breach has occurred. - FY2022RestatedAnnual report
「The syndicated loan agreement and commitment line agreement entered into by the Company’s wholly owned subsidiary with its financial institutions are subject to financial covenants. If these covenants are breached, the borrower would lose the benefit of time for repayment upon demand by the lenders and would immediately need funds to repay the debt, which could affect the Group’s financial position and liquidity.」
The company continues to disclose financial covenants and their potential impact on liquidity in the event of a breach as key risks. The total amount of commitment lines and other facilities is ¥2.7 billion, and outstanding borrowings are ¥1.46 billion. - FY2022-Q3First statedAnnual report
「If these covenants are breached, the borrower would lose the benefit of time for repayment upon demand by the lenders and would immediately need funds to repay the debt, which could affect the Group’s financial position and liquidity. The amount of consolidated net assets in the net assets section of the consolidated balance sheet at the end of each fiscal year ending on or after 31 March 2022 must be maintained at no less than 75% of the corresponding amount in the previous year. The ratio of total interest-bearing debt to the total of operating income or loss, interest received, dividends received and depreciation and amortization expense, including amortization of goodwill, as stated in the non-consolidated income statement must not exceed 10 times. The payout ratio of the borrower, Miaselsha Co., Ltd., must be maintained at no more than 30% at the end of each fiscal year ending on or after 31 March 2022.」
Syndicated loans and other borrowings are subject to financial covenants covering net asset maintenance, ordinary income or loss, the debt multiple and the payout ratio. The filing does not state that any covenant breach has occurred.