Financial Covenants and Risk of Acceleration under Syndicated Loans
First written in FY2026-H1. 1 of 2 entries say "Restated". Latest entry: FY2026.
- FY2026RestatedAnnual report
「Agreement type: syndicated term loan agreement; debt balance at fiscal year-end: ¥4,236 million; maturity date: 31 July 2040; this agreement contains the following financial covenants, and if the company breaches them and the lender makes a demand, it will lose the benefit of the time allowed for repayment.」
The company continues to disclose the syndicated loan agreement, the debt balance of ¥4,236 million at fiscal year-end, the 31 July 2040 maturity date, and financial covenants relating to net assets and ordinary income or loss. - FY2026-H1First statedAnnual report
「This agreement contains the following financial covenants. If the company breaches any of them and the lender makes a demand, it will lose the benefit of the time allowed for repayment. • The amount of net assets on the balance sheet at each fiscal year-end must not fall below 75% of the higher of the amount of net assets on the balance sheet at the end of the immediately preceding fiscal year or at the end of the fiscal year ended March 2024, for 3 consecutive fiscal years. • The income statement ordinary income or loss for each fiscal year must not show an ordinary loss for 3 consecutive fiscal years.」
The ¥4.3 billion syndicated term loan agreement, maturing on 31 July 2040, contains financial covenants relating to net asset levels and ordinary income or loss. The agreement states that if the covenants are breached and the lenders make a demand, the company will lose the benefit of the time allowed for repayment.