Risk of Loss of Benefit of Term Due to Breach of Financial Covenants
First written in FY2024-Q2. 2 of 5 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2025.
- FY2025MitigatedAnnual report
「The borrowings subject to financial covenants have been repaid, and we maintain close relationships with existing lending institutions, led by our main bank, and believe that we will continue to receive their support.」
Although the financial covenants were breached in the previous fiscal year, the company made progress in addressing the risk of losing the benefit of time by repaying the relevant borrowings and maintaining relationships with financial institutions during the current fiscal year. - FY2025-H1MitigatedAnnual report
「In the previous consolidated fiscal year, the company recorded significant operating losses, ordinary losses and net losses for 2 consecutive periods. As a result, it breached financial covenants in loan agreements with certain financial institutions, but obtained consent from the lending financial institutions not to demand the loss of the benefit of time.」
The financial covenants had been breached, but the lending financial institutions consented not to demand the loss of the benefit of time. The company also refinanced short-term borrowings, advancing its response to the risk of losing the benefit of time. - FY2024MaterialisedAnnual report
「As of the end of the consolidated fiscal year, the company was in breach of the above financial covenants.」
The financial covenants, previously described as potentially being breached, were stated to have actually been breached as of the end of the consolidated fiscal year. As of the filing date, a waiver of the loss of the benefit of time had been finalized for ¥260 million of long-term borrowings. - FY2024-Q3WorsenedAnnual report
「However, these measures are still being implemented, and final agreements have not been reached with all relevant parties. Accordingly, we recognize that material uncertainty exists regarding the going-concern assumption at present.」
It was repeatedly stated that measures to address the risk of breaching financial covenants were still being implemented and that final agreements had not yet been reached with some relevant parties, meaning that material uncertainty continued to exist. - FY2024-Q2First statedAnnual report
「As of the end of the consolidated fiscal year, the company is expected to record operating losses and ordinary losses for 2 consecutive periods. This may result in a breach of financial covenants in loan agreements with certain financial institutions, and if the covenants are applied, the company will lose the benefit of time on long-term borrowings and other debt.」
The possibility of breaching financial covenants triggered by operating losses and ordinary losses for 2 consecutive periods, together with the loss of the benefit of time if the covenants are applied, was newly identified as a risk. The disclosure does not state that the covenants were actually applied or that the benefit of time was lost.