TOKYO, May 22 (Pulse News Wire) – Konaka CO.,LTD. (7494.T) announced today that its subsidiary, Samantha Thavasa Japan Limited (STJ), had breached certain financial covenants related to a syndicated loan agreement.
However, the lender banks agreed not to exercise their rights to terminate the interest period on May 21, 2026. STJ, headquartered at Tokyo, Shinagawa Ku Higashigotanda Ni Choume 22-9, engages in the planning, manufacturing, and sale of bags, jewelry, and apparel. The breach occurred due to STJ's failure to maintain cumulative quarterly operating profit and net income attributable to parent company shareholders at or above 80% of the initial plan values set during the syndication of the loan on May 13, 2024. The loan agreement was established with three city banks and one regional bank, with a principal amount of ¥4.432 billion.
The debt repayment deadline is scheduled for May 29, 2026, secured by real estate assets and inventory. Konaka CO.,LTD. also provides a guarantee for the debt. Regarding future prospects, the company stated that the impact on the September 2026 fiscal performance would be minor.
🟡 Confidence: Standard AI-translated content.