Borrowings and Financial Covenants Associated with the Succession of ウィットワン
First written in FY2019-Q1. 11 of 28 entries say "Softened", first in FY2019-Q2. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「The Company entered into a syndicated loan agreement totaling ¥1,405 million dated 26 March 2020, with Sumitomo Mitsui Banking Corporation acting as arranger, and subsequently entered into amendment agreements on multiple occasions. The financial covenants are based on the amendment agreement dated 25 March 2026.」
Under the amendment agreement dated 25 March 2026, a new tranche of long-term term loans and a commitment line were arranged, with maturities set for 2027 and 2029. Contractual borrowings outstanding at the end of the fiscal year were ¥695,950 thousand, down from ¥700,250 thousand at the end of the previous fiscal year. - FY2026-H1MitigatedAnnual report
「Under the modification agreement dated 25 September 2025, the maturity date was extended from 30 September 2025 to 31 March 2026. The financial covenant terms were not changed from those in the modification agreement dated 24 September 2024.」
The Company entered into a modification agreement extending the syndicated loan maturity date from 30 September 2025 to 31 March 2026. The contractual financial covenants remain in effect, while borrowings under the agreement at the end of the interim period totaled ¥650.250 million, down from ¥700.250 million at the end of the previous fiscal year. - FY2025MitigatedAnnual report
「Short-term borrowings ¥463.239 million ¥525.250 million Long-term borrowings (including amounts due for repayment within one year) ¥335.750 million ¥175 million Total ¥798.989 million ¥700.250 million」
Under the modified syndicated loan, total borrowings subject to the financial covenants decreased from ¥798.989 million to ¥700.250 million. The disclosure continues to cover the decrease in the long-term borrowing component and the covenants following the contract modification. - FY2025-H1RestatedAnnual report
「The Company entered into a ¥1,405 million syndicated loan agreement in March 2020, with Sumitomo Mitsui Banking Corporation acting as arranger, and entered into a modification agreement dated 24 September 2024.」
The syndicated loan and financial covenants following the modification agreement dated 24 September 2024 continue to be disclosed. Borrowings subject to the covenants comprise ¥525.250 million of short-term borrowings and ¥245.250 million of long-term borrowings and other borrowings, with long-term borrowings and other borrowings down from the end of the previous fiscal year. - FY2024MitigatedAnnual report
「Regarding the syndicated loan agreement, the Company entered into a modification agreement to increase the short-term borrowings (Tranche B), which were scheduled to mature at the end of September 2024, extend the borrowing period by one year through refinancing (Tranche D), and relax the financial covenants.」
Although past breaches of the financial covenants remain outstanding, the borrowing period was extended to 1 year, refinancing into a ¥525 million term loan was completed, and the covenants were relaxed. Measures to address short-term borrowing and contract renewal risks have progressed. - FY2024-Q3SoftenedAnnual report
「Short-term borrowings ¥463.239 million Long-term borrowings (including amounts due for repayment within one year) ¥381 million」
Borrowings subject to financial covenants decreased from ¥665 million of short-term borrowings and ¥516.750 million of long-term borrowings at the end of the previous fiscal year to ¥463.239 million and ¥381 million, respectively. The disclosure continues to refer to the breach of the financial covenants at the end of the previous fiscal year and ongoing discussions with the financial institutions. - FY2024-Q2SoftenedAnnual report
「Short-term borrowings ¥665 million ¥564.413 million Long-term borrowings (including amounts due for repayment within one year) ¥516.750 million ¥426.250 million」
Borrowings subject to financial covenants decreased from ¥665 million to ¥564.413 million for short-term borrowings and from ¥516.750 million to ¥426.250 million for long-term borrowings. The disclosure continues to refer to the breach of the financial covenants at the end of the previous fiscal year and ongoing discussions with the financial institutions. - FY2024-Q1RestatedAnnual report
「The Company was in breach of the relevant financial covenants at the end of the previous fiscal year. However, as it maintains close relationships with its lending financial institutions and continues to hold regular, constructive discussions with them, it believes that ongoing support will continue to be available from those institutions.」
The breach of the financial covenants remains outstanding. The Company cites discussions with the financial institutions and the expectation of continued support as measures to address the situation, but material uncertainty regarding the going-concern assumption remains. - FY2023-Q3SoftenedAnnual report
「Short-term borrowings ¥600 million ¥700 million Long-term borrowings (including amounts due for repayment within one year) ¥697.750 million ¥562 million」
Among borrowings subject to financial covenants, short-term borrowings increased from ¥600 million to ¥700 million, while long-term borrowings decreased from ¥697.750 million to ¥562 million, resulting in a year-on-year decrease in total borrowings. The conditions relating to net asset maintenance, ordinary losses, and the debt ratio remain in effect. - FY2023-Q2WorsenedAnnual report
「Short-term borrowings ¥600 million ¥700 million Long-term borrowings (including amounts due for repayment within one year) ¥697.750 million ¥607.250 million」
Among borrowings subject to financial covenants, short-term borrowings increased from ¥600 million to ¥700 million, while long-term borrowings decreased from ¥697.750 million to ¥607.250 million. Total borrowings subject to the covenants increased, and the financial covenants remain in effect. - FY2023-Q1SoftenedAnnual report
「Short-term borrowings ¥600 million ¥600 million Long-term borrowings (including amounts due for repayment within one year) ¥697.750 million ¥652.500 million」
Of the borrowings subject to financial covenants, short-term borrowings remained unchanged at ¥600 million, while long-term borrowings decreased from ¥697.750 million at the end of the previous fiscal year to ¥652.500 million. The financial covenants remain in effect, and there is no statement that the breach at the end of the previous fiscal year has been resolved. - FY2022MaterialisedAnnual report
「As net assets on the consolidated balance sheet at the end of the fiscal year amounted to ¥1,892.475 million, the Company was in breach of the financial covenants under its syndicated loan agreement. However, its equity ratio was 38.8%, a level generally considered to present no solvency concerns. The Company also held discussions with its principal lending financial institutions regarding a waiver for this matter under the syndicated loan agreement. As a result, it obtained the lenders’ agreement not to demand acceleration of the loan.」
A breach of the net asset maintenance covenant actually occurred. Short-term borrowings amounted to ¥600 million and long-term borrowings to ¥697.750 million, while the Company obtained the financial institutions’ agreement not to demand acceleration of the loan. - FY2022-Q3WorsenedAnnual report
「Short-term borrowings ¥350 million ¥600 million Long-term borrowings (including amounts due for repayment within one year) ¥303.750 million ¥743 million」
Among borrowings subject to financial covenants, short-term borrowings increased from ¥350 million to ¥600 million, while long-term borrowings increased from ¥303.750 million to ¥743 million. Borrowings subject to the covenants increased substantially. - FY2022-Q2WorsenedAnnual report
「Short-term borrowings ¥350 million ¥400 million Long-term borrowings (including amounts due for repayment within one year) ¥303.750 million ¥263.250 million」
Among borrowings subject to financial covenants, short-term borrowings increased from ¥350 million to ¥400 million, while long-term borrowings decreased from ¥303.750 million to ¥263.250 million. Total borrowings subject to the covenants increased. - FY2022-Q1WorsenedAnnual report
「Short-term borrowings ¥350 million ¥600 million Long-term borrowings (including amounts due for repayment within one year) ¥303.750 million ¥283.500 million」
Short-term borrowings subject to financial covenants increased from ¥350 million to ¥600 million, while long-term borrowings decreased from ¥303.750 million to ¥283.500 million. Total borrowings subject to the covenants increased. - FY2021SoftenedAnnual report
「Short-term borrowings ¥350 million Long-term borrowings (including amounts due for repayment within one year) ¥303.750 million」
Short-term borrowings subject to financial covenants remained unchanged at ¥350 million, while long-term borrowings decreased from ¥384.750 million in the previous fiscal year to ¥303.750 million. The requirements to maintain net assets at 75% or more, avoid ordinary losses for two consecutive periods, and satisfy conditions relating to interest-bearing debt remain in effect. - FY2021-Q3WorsenedAnnual report
「Short-term borrowings ¥350 million ¥500 million Long-term borrowings (including amounts due for repayment within one year) ¥384.750 million ¥324 million」
Among borrowings subject to financial covenants, short-term borrowings increased from ¥350 million to ¥500 million, while long-term borrowings decreased from ¥384.750 million to ¥324 million. Total borrowings subject to the covenants increased. - FY2021-Q2SoftenedAnnual report
「Short-term borrowings ¥350 million ¥350 million Long-term borrowings (including amounts due for repayment within one year) ¥384.750 million ¥344.250 million」
Long-term borrowings in Category 2 subject to financial covenants decreased from ¥384.750 million to ¥344.250 million, while short-term borrowings remained unchanged at ¥350 million. - FY2021-Q1SoftenedAnnual report
「Short-term borrowings ¥350 million ¥300 million Long-term borrowings (including amounts due for repayment within one year) ¥384.750 million ¥364.500 million」
Borrowings subject to financial covenants decreased from ¥350 million to ¥300 million for short-term borrowings and from ¥384.750 million to ¥364.500 million for long-term borrowings. The requirements to maintain net assets at 75% or more, avoid ordinary losses for two consecutive periods, and satisfy conditions relating to interest-bearing debt remain in effect. - FY2020Confirmation of borrowings subject to covenants and financial covenant termsAnnual report
「Short-term borrowings ¥350 million Long-term borrowings (including amounts due for repayment within one year) ¥384.750 million…The total amount of net assets…must be maintained at…75% or more.…Ordinary profit or loss must not be a loss for two consecutive periods.」
The new borrowings subject to financial covenants comprise ¥350 million of short-term borrowings and ¥384.750 million of long-term borrowings. The conditions were specified as maintaining net assets at 75% or more, avoiding ordinary losses for two consecutive periods, and maintaining a specified interest-bearing debt ratio. - FY2020-Q3WorsenedAnnual report
「Short-term borrowings － ¥500,000 thousand Long-term borrowings, including amounts due for repayment within one year － ¥405,000 thousand ・The total amount of net assets reported in the consolidated balance sheet at the end of the fiscal year ending June 2020 and at the end of each subsequent fiscal year must be maintained at or above the higher of the amount equivalent to 75% of the total amount of net assets reported in the consolidated balance sheet at the end of the fiscal year ended March 2019 and the amount equivalent to 75% of the total amount of net assets reported in the consolidated balance sheet at the end of the immediately preceding fiscal year.」
The balance of existing long-term borrowings subject to financial covenants decreased to ¥100.010 million, while new short-term borrowings of ¥500 million and long-term borrowings of ¥405 million became subject to the covenants, and additional covenants, including maintaining net assets at 75% or more, were disclosed. - FY2020-Q2SoftenedAnnual report
「Certain long-term borrowings, including amounts due for repayment within one year, are subject to financial covenants. The outstanding balance under the monetary loan agreement is ¥116,675 thousand.」
The outstanding balance of borrowings subject to financial covenants decreased from ¥133,340 thousand previously reported to ¥116,675 thousand. The conditions requiring net assets to be maintained at 70% or more of the reference amount and ordinary income or loss to be maintained at ¥0 or more remain in effect. - FY2020-Q1SoftenedAnnual report
「Certain long-term borrowings, including amounts due for repayment within one year, are subject to financial covenants. The outstanding balance under the monetary loan agreement is ¥133,340 thousand.」
The outstanding balance of borrowings subject to financial covenants decreased from the ¥150.005 million previously reported to ¥133.340 million. The conditions requiring net assets to be maintained at 70% or more of the reference amount and ordinary income or loss to be maintained at ¥0 or more remain in effect. - FY2019-Q4SoftenedAnnual report
「Certain long-term borrowings, including amounts due for repayment within one year, are subject to financial covenants. The outstanding balance under the monetary loan agreement is ¥150,005 thousand.」
The outstanding balance of borrowings subject to financial covenants decreased from the ¥183 million previously reported to ¥150.005 million. The condition requiring net assets to be maintained at 70% or more of the reference amount and ordinary income or loss to be maintained at ¥0 or more remains in effect. - FY2019-Q2SoftenedAnnual report
「Certain long-term borrowings, including amounts due for repayment within one year, are subject to financial covenants. The outstanding balance under the monetary loan agreement is ¥183 million.」
The outstanding balance of borrowings subject to financial covenants decreased from the ¥200 million previously reported to ¥183 million. The conditions requiring net assets to be maintained at 70% or more of the reference amount and ordinary income or loss to be maintained at ¥0 or more remain in effect. - FY2019-Q1First statedAnnual report
「Certain long-term borrowings, including amounts due for repayment within one year, are subject to financial covenants. The outstanding balance under the monetary loan agreement is ¥200 million. The covenants are as follows: ・The total amount of net assets in the consolidated balance sheet at the end of each fiscal year beginning with the fiscal year ending March 2019 must be maintained at not less than 70% of the higher of the total amount of net assets at the end of the fiscal year ended March 2018 and the total amount of net assets at the end of the immediately preceding fiscal year. ・Ordinary income or loss in the consolidated income statement for each fiscal year beginning with the fiscal year ending March 2019 must be maintained at ¥0 or more.」
The company disclosed that borrowings related to the consideration for the business succession from Wit One and working capital, with an outstanding balance of ¥200 million, are subject to financial covenants requiring net assets to be maintained and ordinary income or loss to remain positive from the fiscal year ending March 2019 onward.