Material Uncertainty Regarding Going Concern Due to Improper Accounting and Breach of Financial Covenants
First written in FY2025. 4 of 9 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-08-10.
Toshin Holdings moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
24 other companies' latest entry also says "Worsened".
- 2026-08-10WorsenedStatutory disclosure document
「However, as of 10 August 2026, the statutory filing deadline for the annual securities report for the fiscal year, the general investigation period for reorganization claims and other claims in these proceedings, from 14 August 2026 to 20 August 2026, had not been completed, the liabilities and other obligations of the Company had not been finalized, and the contents of the proposed rehabilitation plan being prepared by the administrators remained unsettled. The basic rehabilitation policy, changes to rights relating to reorganization claims and other claims and the repayment method, matters concerning the issuance of shares, and the management structure after approval of the rehabilitation plan had not been finalized.」
In connection with material uncertainty regarding the going-concern assumption, the Company applied to extend the filing deadline for its annual securities report because its liabilities, proposed rehabilitation plan, rehabilitation policy, repayment method, share issuance and post-approval management structure had not been finalized. The canonical thread itself remains unchanged. - FY2026AdvancedAnnual report
「The company's administrator submitted a proposed rehabilitation plan to the court on 9 September 2026. However, because the court has not approved the rehabilitation plan, among other reasons, material uncertainty exists regarding the going concern assumption.」
Although material uncertainty remains regarding the going concern assumption, the company records concrete procedural progress through the administrator's submission of a proposed rehabilitation plan to the court. - FY2026MaterialisedAnnual report
「At a meeting of the Board of Directors held on 8 May 2026, the Company resolved to petition the Tokyo District Court to commence corporate reorganisation proceedings and filed the petition with the court on the same day. On the same day, the court issued an order commencing corporate reorganisation proceedings. As no reorganisation plan has been determined as of the present time, material uncertainty regarding the going-concern assumption remains.」
Against a backdrop of improper accounting, breaches of financial covenants, deteriorating cash flow, and difficulty repaying borrowings, an order commencing corporate reorganisation proceedings was issued, and material uncertainty continues because no reorganisation plan has been determined. - FY2026-H1WorsenedAnnual report
「However, as of the present time, the measures described above are still being implemented, and material uncertainty regarding the going-concern assumption remains.」
In addition to a current ratio of 54.2%, covenant breaches, and requests for extensions of repayment deadlines, measures including continued financial support, improvements to the internal management structure, and asset sales are still being implemented, and material uncertainty continues. - FY2025First statedAnnual report
「The Group's current ratio (current assets/current liabilities) at the end of the current consolidated fiscal year was 58.1%. Under these financial conditions, corrections to the financial statements necessitated by improper accounting resulted in breaches of covenants in the borrowing agreements. In addition, payment of correction-related costs, including audit and investigation expenses related to the improper accounting, and additional tax assessed in tax audits worsened the Group's cash flow after the end of the current consolidated fiscal year, making it difficult to continue repaying borrowings. As a result, the Group has been required to request extensions of its repayment deadlines from its lending financial institutions.」
The Company newly disclosed material doubts and material uncertainty regarding the going-concern assumption, citing a current ratio of 58.1%, breaches of financial covenants, deteriorating cash flow, and difficulty continuing to repay borrowings.