Loan Agreements with Financial Covenants
First written in FY2026-H1. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
- FY2026WorsenedAnnual report
「The Company has entered into loan agreements containing financial covenants.」
In addition to the existing agreements, multiple agreements, including those entered into in November and December 2025, and the debt balance at the fiscal year-end were disclosed for borrowings subject to financial covenants, indicating an increase in borrowing exposure subject to covenants requiring the maintenance of equity and the avoidance of consecutive losses. - FY2026-H1First statedAnnual report
「30 April 2025: city bank; ¥740 million; 31 January 2028; provisional registration of mortgage; maintain, at each fiscal year-end and interim period during the loan term, the shareholders’ equity ratio shown in the consolidated balance sheet at or above the amount equivalent to 25%. / 13 June 2025: regional bank; ¥1,935 million; 31 May 2028; provisional registration of mortgage; maintain, at each fiscal year-end during the loan term, total equity shown in the consolidated balance sheet at or above the amount equivalent to 75% of the higher of total equity shown in the consolidated balance sheet at the most recent fiscal year-end or at the fiscal year-end immediately preceding the loan term. Do not incur ordinary losses for 2 consecutive consolidated fiscal years. / 18 September 2025: regional bank; ¥592 million; 31 March 2028; provisional registration of mortgage; maintain, at each fiscal year-end during the loan term, total equity shown in the consolidated balance sheet at or above the amount equivalent to 75% of the higher of total equity shown in the consolidated balance sheet at the most recent fiscal year-end or at the fiscal year-end immediately preceding the loan term. Do not incur operating losses for 2 consecutive consolidated fiscal years.」
For loan agreements entered into from April through September 2025, financial covenants were disclosed for the first time, including maintaining a shareholders’ equity ratio of at least 25% and equity of at least 75%, and avoiding ordinary or operating losses for 2 consecutive consolidated fiscal years. There was no indication that any covenant breach had occurred as of the filing date.