Risk of Breaching Financial Covenants on Borrowings
First written in FY2016. 7 of 27 entries say "Worsened", first in FY2020-Q2. Latest entry: 2026-08-26.
Konaka moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026-H1Decrease in borrowings; continued breach of financial covenants by a subsidiaryAnnual report
「1. The Company has entered into a syndicated loan agreement for borrowings of ¥3,162 million. The agreement contains financial covenants as follows: (1) Maintain consolidated ordinary income and net income attributable to owners of the parent at 90% or more of the planned amounts (2) Maintain consolidated net assets at 90% or more of the amount at the end of the immediately preceding fiscal year (3) Keep total borrowings on a non-consolidated basis at the end of the interim accounting period and fiscal year at or below the amount of working capital The above financial covenants also apply to the syndicated loan agreement of 株式会社サマンサタバサジャパンリミテッド. 2. 株式会社サマンサタバサジャパンリミテッド, the Company's consolidated subsidiary, has entered into a syndicated loan agreement for borrowings of ¥4,432 million. The agreement contains financial covenants as follows: • Maintain ordinary income and net income attributable to owners of the parent for Samantha's consolidated operations for each cumulative quarterly period at 90% or more of the planned amounts As of the end of February 2026, 株式会社サマンサタバサジャパンリミテッド was in breach of its financial covenants. However, as it maintains close relationships with its principal banks and continues to hold regular constructive discussions with them, the Company believes that it will continue to receive ongoing support from its principal banks.」
Borrowings subject to financial covenants were ¥3,162 million for the Company and ¥4,432 million for STJ, with both balances declining from the end of the previous fiscal year. Meanwhile, STJ remained in breach of its financial covenants at the end of February 2026. - FY2025Continued breach by the parent company and subsidiary; decrease in borrowing balancesAnnual report
「Syndicated loan borrowings outstanding at the end of the consolidated fiscal year: ¥6,509 million」
The Company's syndicated loan borrowings outstanding were ¥6,509 million, while STJ's were ¥4,632 million. Both companies were in breach of their financial covenants, but had obtained consent from their financial institutions not to exercise their rights relating to acceleration of repayment. - FY2025-H1Decrease in borrowings; continued breach and updated covenant operationAnnual report
「The company has entered into a syndicated loan agreement for borrowings of ¥6,823 million. The agreement contains financial covenants, as set out below.」
The company's covenant-linked borrowings were disclosed as ¥6,823 million and STJ's as ¥4,832 million. STJ was in breach of the financial covenants at the end of February 2025, and the breach continues, while the borrowing amount and covenant terms have been updated. - FY2024WorsenedAnnual report
「At the end of the current fiscal year, the current ratio was 121.5%, with current assets exceeding current liabilities. However, the company had ¥12,012 million of borrowings from financial institutions in breach of financial covenants.」
The company had ¥12,012 million of borrowings in breach of financial covenants, and its new syndicated loans of ¥6,980 million and STJ's ¥5,032 million were also subject to covenants. The breach status and the financial institutions' consent not to exercise their rights continue. - FY2024-Q2WorsenedAnnual report
「In the previous fiscal year, the group recorded operating losses and ordinary losses for 4 consecutive fiscal years and net losses attributable to owners of the parent for 6 consecutive fiscal years. As of the end of the second quarter of the current fiscal year, the current ratio was 93.5%, with current liabilities exceeding current assets, and the group had ¥11,414 million of borrowings from financial institutions in breach of financial covenants.」
The company disclosed 4 consecutive years of operating and ordinary losses, 6 consecutive years of net losses attributable to owners of the parent, a current ratio of 93.5%, and ¥11,414 million of borrowings in breach of financial covenants, indicating that financial constraint risk is worsening. - FY2024-Q1WorsenedAnnual report
「2. The borrowings of ¥9,109 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants, as set out below.」
Samantha Thavasa's covenant-linked borrowings amounted to ¥9,109 million, and the company states that it was in breach of the covenants at the end of November 2023. Additional covenants require a month-end cash balance of at least ¥300 million and monthly operating income or loss to remain at or above the earnings plan. - FY2023WorsenedAnnual report
「At the end of the current fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
The company's breach of the financial covenants and the consent from the financial institutions not to exercise their rights continue. Samantha Thavasa was also in breach at the end of August 2023, and the disclosures include additional covenants concerning minimum month-end cash balances and monthly operating income or loss, as well as changes to the repayment schedule. - FY2023-Q3Decrease in borrowings; continued breach by both companies and operation following changes to the financial covenantsAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,000 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥9,359 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants, as set out below. As of the end of February 2023, Samantha Thavasa Japan Limited was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
The company's borrowings subject to the covenants amounted to ¥4,000 million, while Samantha Thavasa's amounted to ¥9,359 million, both down from the previous disclosure. However, both companies remain in breach of their financial covenants, and consent from the financial institutions not to exercise their rights continues. - FY2023-Q2Decrease in borrowings; continued breach by the company and its subsidiary; financial covenants changedAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,030 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥9,459 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants, as set out below. As of the end of February 2023, Samantha Thavasa Japan Limited was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. (1) The amount of net assets stated in the non-consolidated or consolidated balance sheet as of the end of the fiscal year ending September 2023 and the end of each subsequent fiscal year must be maintained at or above the amount of net assets as of the end of the fiscal year ended September 2022.」
The company's borrowings subject to the covenants amounted to ¥4,030 million, while Samantha Thavasa's amounted to ¥9,459 million, both down from the previous disclosure. However, both companies remain in breach of their financial covenants, and consent from the financial institutions not to exercise their rights continues. After the filing, the net asset maintenance covenant on the company's syndicated loan was changed. - FY2023-Q1Decrease in borrowings; continued breach by the company and its subsidiary and continued consent not to exercise rightsAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,080 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥10,715 million of our consolidated subsidiary 株式会社サマンサタバサジャパンリミテッド are subject to a syndicated loan agreement, which contains financial covenants,」
The company's covenant-linked borrowings amounted to ¥4,080 million, while Samantha Thavasa's amounted to ¥10,715 million, both down from the end of the previous fiscal year. However, the company and Samantha Thavasa remain in breach of their financial covenants, and consent from the financial institutions not to exercise their rights relating to acceleration remains in place. Additional collateral was provided for Samantha Thavasa's syndicated loan, and the repayment date for Tranche C was changed to 31 May 2023. - FY2022Decrease in borrowings; continued breach by the company and its subsidiaryAnnual report
「At the end of the current fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
The company's drawn syndicated loan balance was ¥4,130 million, while Samantha Thavasa's was ¥10,815 million, both down from the previous disclosure. However, both companies remain in breach of their financial covenants, and consent from the financial institutions not to exercise their rights continues. - FY2022-Q3Decrease in borrowings; continued breachAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,180 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥10,915 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants,」
The company's borrowings subject to the covenants amounted to ¥4,180 million, while Samantha Thavasa's amounted to ¥10,915 million, both down from the previous disclosure. However, the company's breach and the consent from the financial institutions not to exercise their rights continue. The disclosure also states that Samantha Thavasa remains in breach and has obtained consent not to exercise those rights. - FY2022-Q2Decrease in borrowings; continued breach of financial covenants and consent not to exercise rightsAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,230 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥11,015 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants, as set out below. As of the end of February 2022, Samantha Thavasa Japan Limited was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
The company's borrowings subject to the covenants amounted to ¥4,230 million, while Samantha Thavasa's amounted to ¥11,015 million, both down from the previous disclosure. However, both companies continue to be in breach of their financial covenants, and consent from the financial institutions not to exercise their rights remains in place. - FY2022-Q1Decrease in parent-company borrowings; increase in subsidiary borrowings; continued breachAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥4,280 million. The agreement contains financial covenants, as set out below. At the end of the previous fiscal year, the company was in breach of the financial covenants; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings. 2. The borrowings of ¥11,115 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants,」
The company continues to disclose its breach of the financial covenants and the consent from the financial institutions not to exercise their rights. The company's borrowings subject to the covenants amount to ¥4,280 million, while Samantha Thavasa's covenant-linked borrowings amount to ¥11,115 million. - FY2021Continued breach by the company; details of subsidiary borrowingsAnnual report
「At the end of the current fiscal year, the company was in breach of the financial covenants above; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
The company continues to disclose its breach of the financial covenants and the consent from the financial institutions not to exercise their rights. It also discloses covenants relating to Samantha Thavasa's ¥10,656 million drawn under its syndicated loan. - FY2021-Q3RestatedAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥6,750 million. The agreement contains financial covenants, as set out below.」
The company continues to disclose borrowings of ¥6,750 million under its syndicated loan and the related financial covenants. It also discloses a ¥9,361 million syndicated loan subject to financial covenants at Samantha Thavasa Japan Limited. - FY2021-Q2RestatedAnnual report
「1. The company has entered into a syndicated loan agreement for borrowings of ¥6,800 million. The agreement contains financial covenants, as set out below.」
The company continues to disclose that its ¥6,800 million syndicated loan is subject to financial covenants concerning the maintenance of net assets and ordinary income or loss. The breach of the net asset maintenance covenant at the end of the previous fiscal year and the consent obtained from the financial institutions not to exercise their rights are also reiterated. - FY2021-Q1WorsenedAnnual report
「2. The borrowings of ¥10,677 million of our consolidated subsidiary Samantha Thavasa Japan Limited are subject to a syndicated loan agreement, which contains financial covenants,」
The ¥10,677 million of borrowings at consolidated subsidiary Samantha Thavasa Japan Limited is under a syndicated loan subject to financial covenants. Additional covenants concerning the maintenance of net assets, ordinary income or loss, and the continued status of consolidated subsidiaries are also disclosed. - FY2020MaterialisedAnnual report
「At the end of the current fiscal year, the company was in breach of the financial covenant in (1) above; however, it obtained consent from the lending financial institutions not to exercise their rights relating to acceleration of the borrowings.」
A breach of the financial covenant concerning the maintenance of net assets has actually occurred. However, consent has been obtained from the financial institutions not to exercise their rights relating to acceleration of the borrowings. - FY2020-Q3WorsenedAnnual report
「The company has entered into syndicated loan and commitment line agreements with multiple financial institutions, and these agreements contain financial covenants. Breach of the financial covenants could have a material effect on the financial position of the group, including acceleration of the borrowings.」
In addition to the existing covenant-linked borrowings, a commitment line agreement dated 17 June 2020 was added, and the terms of the facilities have been specified, including ¥6,950 million drawn under the company's syndicated loan and ¥1,000 million drawn under the commitment line. - FY2020-Q2WorsenedAnnual report
「On 26 March 2020, the company entered into a syndicated loan agreement with multiple financial institutions. The agreement contains financial covenants. Breach of the financial covenants could have a material effect on the financial position of the group, including acceleration of the borrowings.」
In addition to Fit House's existing covenant-linked borrowings, the company itself entered into a syndicated loan agreement and incurred new borrowings subject to financial covenants concerning the maintenance of net assets and ordinary income or loss. - FY2019MitigatedAnnual report
「Of the borrowings of consolidated subsidiary 株式会社フィットハウス, ¥4,600 million are subject to financial covenants. Until all obligations have been fully performed, failure by 株式会社フィットハウス to comply with the covenants below could result in acceleration of the borrowings.」
The amount of borrowings subject to financial covenants decreased from ¥7,220 million in the previous disclosure to ¥4,600 million. However, the risk of acceleration if the covenants are breached remains. - FY2016First statedAnnual report
「Of the borrowings of consolidated subsidiary 株式会社フィットハウス, ¥7,220 million are subject to financial covenants. Until all obligations have been fully performed, failure by 株式会社フィットハウス to comply with the covenants below could result in acceleration of the borrowings.」
The borrowings of ¥7,220 million at Fit House are subject to maintaining adjusted net assets at no less than 75% of the reference amount and to not recording an operating loss or ordinary loss on an adjusted basis.