Liquidity Risk from Breach of Financial Covenants under the Commitment Line
First written in FY2020. 5 of 17 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026Outstanding borrowings under the commitment line increased from ¥1,000 million to ¥1,200 millionAnnual report
「Total commitment line: ¥6 billion; drawn balance: ¥1.2 billion; undrawn amount: ¥4.8 billion」
The financial covenants and the risk of lump-sum repayment upon a breach remain in place. The drawn balance increased from ¥1 billion at the end of the previous fiscal year to ¥1.2 billion, leaving an undrawn amount of ¥4.8 billion. - 2026-08-05OtherGeneral Meetings of Shareholders
「The contracts in “(3)” contain the financial covenants and other provisions set out below. If a specific provision is breached, the borrower must repay all borrowings at once to the lender to which that provision applies.」
Financial covenants and the risk of accelerated repayment in the event of a breach continue to be disclosed. The amount drawn is ¥1,200 million, and the disclosure does not indicate that the risk itself has ended. - FY2026-H1MitigatedAnnual report
「Total commitment line ¥6,000 million ¥6,000 million Drawn balance ¥1,000 million — Difference ¥5,000 million ¥6,000 million」
The financial covenants and the risk of lump-sum repayment upon a breach remain in place, while the drawn balance decreased from ¥1 billion at the end of the previous fiscal year to zero and the undrawn amount became ¥6 billion. - FY2025MitigatedAnnual report
「① The total amount of net assets shown in the consolidated balance sheet at the end of the fiscal year ending May 2024 and at the end of each subsequent fiscal year must be maintained at or above 75% of the total amount of net assets shown in the consolidated balance sheet at the end of the immediately preceding fiscal year. ② Operating profit or loss shown in the consolidated income statement at the end of the fiscal year ending May 2024 and at the end of each subsequent fiscal year must not be a loss for 2 consecutive periods.」
The financial covenants and the risk of lump-sum repayment upon a breach remain in place, while the drawn balance under the commitment line decreased from ¥7.6 billion to ¥1 billion and the undrawn amount increased to ¥5 billion. - FY2025-H1Undrawn amount increased as the commitment amount expanded and the drawn balance decreasedAnnual report
「Total commitment line ¥10,400 million ¥12,600 million Outstanding borrowings ¥7,600 million ¥5,492 million Undrawn amount ¥2,800 million ¥7,108 million」
Under the commitment line subject to financial covenants, the commitment amount increased from ¥10.4 billion to ¥12.6 billion, while the drawn balance decreased from ¥7.6 billion to ¥5.492 billion. The undrawn amount was ¥7.108 billion. The financial covenants and the risk of lump-sum repayment upon a breach remain in place. - FY2024Commitment line commitment amount and outstanding borrowings increasedAnnual report
「Commitment amount at the end of the current consolidated fiscal year: ¥10,400 million; outstanding borrowings at the end of the current consolidated fiscal year: ¥7,600 million」
Under the commitment line subject to financial covenants, the commitment amount changed from ¥8 billion to ¥10.4 billion, and the drawn balance changed from ¥7 billion to ¥7.6 billion. The covenants requiring net assets to be maintained at 75% or more and prohibiting operating losses for 2 consecutive periods, as well as the risk of lump-sum repayment upon a breach, remain in place. - FY2024-Q3Drawn balance under the commitment line increased from ¥7 billion to ¥7.4 billionAnnual report
「Total commitment line ¥8 billion ¥8 billion Drawn balance ¥7 billion ¥7.4 billion Undrawn amount ¥1 billion ¥600 million」
Under the ¥8 billion commitment line subject to financial covenants, the drawn balance increased from ¥7 billion to ¥7.4 billion, leaving an undrawn amount of ¥600 million. - FY2024-Q2RestatedAnnual report
「The agreement referred to in “1” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies.」
The company has reiterated the financial covenants concerning maintenance of net assets and operating profit or loss under the ¥8 billion commitment line, as well as the risk of lump-sum repayment upon a breach. - FY2024-Q1RestatedAnnual report
「The agreement referred to in “※1” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies.」
The company continues to disclose the financial covenants concerning maintenance of net assets and operating profit or loss under the commitment line, as well as the risk of lump-sum repayment upon a breach. - FY2023Outstanding borrowings under the commitment line increased from ¥6,000 million to ¥7,000 millionAnnual report
「The ¥8 billion commitment line had a drawn balance of ¥5.5 billion and an undrawn amount of ¥2.5 billion, which changed to a drawn balance of ¥7 billion and an undrawn amount of ¥1 billion at the end of the current consolidated fiscal year.」
The drawn balance under the commitment line subject to financial covenants increased, leaving an undrawn amount of ¥1 billion. - FY2023-Q3Drawn balance under the commitment line decreased from ¥7 billion to ¥6 billionAnnual report
「Total commitment line ¥8 billion ¥8 billion Drawn balance ¥5.5 billion ¥6 billion Undrawn amount ¥2.5 billion ¥2 billion」
Under the ¥8 billion commitment line, the drawn balance increased from ¥5.5 billion at the end of the previous consolidated fiscal year to ¥6 billion. It decreased from ¥7 billion recorded in the previous filing. The financial covenants and the risk of lump-sum repayment upon a breach continue to be disclosed. - FY2023-Q2Drawn balance under the commitment line increased to ¥7 billionAnnual report
「Total commitment line ¥8 billion ¥8 billion Drawn balance ¥5.5 billion ¥7 billion Undrawn amount ¥2.5 billion ¥1 billion」
Under the ¥8 billion commitment line, the drawn balance increased from ¥5.5 billion at the end of the previous consolidated fiscal year to ¥7 billion, leaving an undrawn amount of ¥1 billion. The financial covenants and the risk of lump-sum repayment upon a breach continue to be disclosed. - FY2022-Q3RestatedAnnual report
「The agreement referred to in “1” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies.」
The company has reiterated the financial covenants concerning maintenance of net assets and operating profit or loss under the commitment line, as well as the risk of lump-sum repayment upon a breach. - FY2022-Q2RestatedAnnual report
「The agreement referred to in “1” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies. ① The total amount of net assets shown in the consolidated balance sheet at the end of the fiscal year ending May 2020 and at the end of each subsequent fiscal year must be maintained at or above 75% of the total amount of net assets shown in the consolidated balance sheet at the end of the immediately preceding fiscal year. ② Operating profit or loss shown in the consolidated income statement at the end of the fiscal year ending May 2020 and at the end of each subsequent fiscal year must not be a loss for 2 consecutive periods.」
The company has reiterated the financial covenants concerning maintenance of net assets and operating profit or loss under the commitment line, as well as the risk of lump-sum repayment upon a breach. - FY2022-Q1RestatedAnnual report
「The agreement referred to in “1” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies.」
The company has reiterated the financial covenants concerning maintenance of net assets and operating profit or loss under the commitment line, as well as the risk of lump-sum repayment upon a breach. - FY2021-Q2Drawn balance under the commitment line increased from ¥1 billion to ¥2 billionAnnual report
「Total commitment line ¥8 billion ¥8 billion Drawn balance — ¥2 billion Undrawn amount — ¥6 billion」
Under the ¥8 billion commitment line, the drawn balance increased from ¥1 billion at the end of the first quarter to ¥2 billion at the end of the second quarter, leaving an undrawn amount of ¥6 billion. - FY2020First statedAnnual report
「The agreement referred to in “4” contains the following financial covenants and other provisions. If a specified covenant is breached, the borrower must make a lump-sum repayment of borrowings to the lender to which that covenant applies. ① The total amount of net assets shown in the consolidated balance sheet at the end of the fiscal year ending May 2020 and at the end of each subsequent fiscal year must be maintained at or above 75% of the total amount of net assets shown in the consolidated balance sheet at the end of the immediately preceding fiscal year. ② Operating profit or loss shown in the consolidated income statement at the end of the fiscal year ending May 2020 and at the end of each subsequent fiscal year must not be a loss for 2 consecutive periods.」
The ¥8 billion syndicated commitment line is subject to financial covenants requiring net assets to be maintained at 75% or more and prohibiting operating losses for 2 consecutive periods, with the risk of lump-sum repayment upon a breach identified for the first time.