Loan Commitments with Financial Covenants
First written in FY2022-Q2. 6 of 19 entries say "Mitigated", first in FY2025-H1. Latest entry: 2026-08-14.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- 2026-08-14MitigatedEarnings
「As of 30 June 2026, the amount drawn under the ¥8,500 million commitment line was ¥700 million, leaving ¥7,800 million undrawn. The Group has secured appropriate funding capacity for its operations and is securing stable funding for its business and working capital by carefully selecting and restraining investment projects and improving Group profitability, including by achieving operating profitability.」
The amount drawn under the commitment line declined from the previously reported ¥1,200 million to ¥700 million, leaving ¥7,800 million undrawn. - FY2026MitigatedAnnual report
「As of 31 March 2026, all lending financial institutions had agreed to waive their rights to demand the acceleration of repayment, thereby resolving the breaches of the affirmative covenants and financial covenants.」
The breaches of the financial institution agreements arising from the delayed filing and operating loss were resolved as of 31 March 2026 through the consent of all relationship financial institutions to waive their rights. - FY2026-H1WorsenedAnnual report
「In addition to being in breach of the undertaking clauses in the intercreditor agreements executed with each relationship financial institution because it failed to file its annual securities report for the fiscal year ended March 2025 by the statutory deadline, the company was in breach of the financial covenants in those agreements because it reported an operating loss in the previous consolidated fiscal year.」
The company remains in breach of the undertaking clauses due to the delayed filing of its annual securities report and the financial covenants due to the operating loss in the previous consolidated fiscal year. It has not received a demand for the loss of the benefit of time, but waivers have not been finalized. - FY2025WorsenedAnnual report
「As of the end of the current consolidated fiscal year, in addition to being in breach of financial covenant ② under clauses (1) and (2) above, the company was in breach of the undertaking clauses in its borrowing agreements with each relationship financial institution because it failed to file its annual securities report for the fiscal year ended March 2025 by the statutory deadline.」
In addition to being in breach of the financial covenant requiring operating profit to remain positive, the company also breached the undertaking clauses because of the delayed filing of its annual securities report. As of the current date, it has not received a demand for the loss of the benefit of time, but discussions with the financial institutions are continuing. - FY2025-H1MitigatedAnnual report
「The company was in breach of financial covenant ② as of the end of FY2023, but on 1 November 2024 it received waivers from its relationship financial institutions of their rights arising from the breach.」
Although the breach of the financial covenants continued, the company received waivers from the financial institutions and changed the repayment date under the existing agreements and transitioned to new financial covenants. - FY2024-Q3Further extension of the maturity of the agreement subject to financial covenantsAnnual report
「In connection with the execution of an amendment agreement dated 27 December 2023, the repayment date changed from 29 December 2023 to 29 February 2024. Although the company was in breach of financial covenant ② as of the end of the third quarter of the current consolidated fiscal year, it obtained the consent of its relationship financial institutions to defer the exercise of their rights on the grounds of the breach.」
The maturity of the syndicated loan and commitment line was further extended to 29 February 2024. The breach of the financial covenant concerning net assets and the deferral by the financial institutions of the exercise of their rights continued. - FY2024-Q2Further extension of the maturity of the agreement subject to financial covenantsAnnual report
「In connection with the execution of an amendment agreement dated 26 September 2023, the repayment date changed from 29 September 2023 to 29 December 2023. Although the company was in breach of financial covenant ② as of the end of the second quarter of the current consolidated fiscal year, it obtained the consent of its relationship financial institutions to defer the exercise of their rights on the grounds of the breach.」
The maturity of the syndicated loan and commitment line was further extended to 29 December 2023. The breach of the financial covenant concerning net assets and the deferral by the financial institutions of the exercise of their rights continued. - FY2024-Q1Continued breach of financial covenants and change in contractual maturityAnnual report
「In connection with the execution of an amendment agreement dated 28 June 2023, the repayment date changed to 29 September 2023. Although the company was in breach of financial covenant ② as of the end of the first quarter of the current consolidated fiscal year, it obtained the consent of its relationship financial institutions to defer the exercise of their rights on the grounds of the breach.」
The maturity of the syndicated loan changed to 29 September 2023. The breach of the financial covenant concerning net assets continued, but the company obtained a deferral of the financial institutions’ exercise of their rights. - FY2023-Q2Additional ¥4.5 billion commitment line agreementAnnual report
「On 30 September 2022, the company entered into a ¥4.5 billion commitment line agreement with Resona Bank, Limited as lender.」
The company entered into a new ¥4.5 billion commitment line agreement secured by the Samukawa Plant. The undrawn balance at the quarter-end was ¥4.5 billion, and the company was not in breach of any financial covenants. - FY2023-Q1Details of the financial covenants under the new agreementsAnnual report
「The amount of net assets in the consolidated balance sheet as of the end of the second quarter and fiscal year-end of the fiscal year ending March 2023 will be maintained at 75% or more of the amount as of the fiscal year ended March 2022.」
The company specifically discloses new financial covenants under the syndicated loan and commitment line agreements, including a condition requiring net assets at the end of the interim period and fiscal year ending March 2023 to be maintained at 75% or more of the level at the fiscal year ended March 2022. - FY2022MaterialisedAnnual report
「Although the company was in breach of the financial covenants as of the end of the current consolidated fiscal year, it entered into the syndicated loan agreement and commitment line agreement described under “Notes to the Consolidated Financial Statements: Significant Subsequent Event (Large-Scale Borrowing),” and obtained agreement from each financial institution not to exercise its right to demand the loss of the benefit of time based on the breach.」
The company moved from a position of not being in breach of the financial covenants through the previous quarter to an actual breach as of the end of the current consolidated fiscal year. However, it obtained agreement from the financial institutions not to exercise their rights to demand the loss of the benefit of time. - FY2022-Q3WorsenedAnnual report
「Total loan commitments: ¥10,000 million; borrowings drawn: ¥7,600 million; undrawn balance: ¥2,400 million. The company was not in breach of any financial covenants as of the end of the third quarter of the current consolidated fiscal year.」
The total loan commitments and borrowings drawn increased from ¥6 billion and none, respectively, at the end of the previous quarter to ¥10 billion and ¥7.6 billion, increasing exposure to borrowings and financial covenants. However, the company was not in breach of the covenants as of the quarter-end. - FY2022-Q2First statedAnnual report
「Some of the contracts above contain mainly the following financial covenants: ・From the contract date onward, net assets as shown under the net assets section of the consolidated balance sheet at each fiscal year-end must not be ¥10 billion or less for 2 consecutive fiscal years. ・From the contract date onward, ordinary income or loss shown in the consolidated income statement for each fiscal year must not be a loss for 2 consecutive fiscal years. As of the end of the second quarter of the current consolidated fiscal year, the total amount of loan commitments subject to financial covenants was ¥6,000 million, with no borrowings drawn. The company was not in breach of any financial covenants as of that date.」
For the first time, the company discloses that some loan commitment agreements with its relationship banks contain financial covenants concerning net assets and ordinary income or loss. The total commitments concerned were ¥6 billion, and the company was not in breach of the covenants as of the quarter-end.