TOKYO, May 15 (Pulse News Wire) – Konaka CO.,LTD. (7494.T) disclosed that its subsidiary, Samantha Thavasa Japan Limited, breached a financial covenant related to a monetary lending agreement.
The breach occurred due to the subsidiary's failure to maintain its ordinary profit and net income attributable to parent shareholders at or above Shi Loan Sosei Ji's planned value of 90% for the cumulative quarter. The loan agreement was signed on May 13, 2024, with three urban banks and one regional bank as counterparties. The principal amount of debt is ¥4.432 billion. The repayment deadline is set for May 29, 2026, secured by real estate and inventory.
Konaka provides a guarantee for the debt. Despite the breach, Konaka maintains close relations with major lenders and expects continued support through ongoing constructive discussions. Further updates will be provided once negotiations with major lenders conclude. For the fiscal year ending September 2026, the impact on performance is expected to be minor.
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