TOKYO, Mar 27 (Pulse News Wire) – Thirty Four CO.,LTD. (310A.T) reported a breach of a financial covenant related to its loan agreements with financial institutions.
According to the company’s statement, the breach occurred due to the net assets value falling below the stipulated benchmark in the standalone balance sheet as of the fiscal year ended December 2025. The breached agreement involves a loan contract signed on February 27, 2025, for purchasing real estate properties used for sales purposes. As of March 27, 2026, the outstanding balance stands at ¥252.0 million. The repayment deadline is set for February 27, 2050.
Under the terms of the financial covenant, the company was required to maintain the net asset value in the standalone balance sheet at or above 75% either at the end of the previous fiscal year or at the end of December 2023, whichever is higher. The company is currently engaged in discussions with the lender to address the situation. Regarding future outlook, the company believes the impact on its operations and cash flow will be minor. It maintains long-term stable relationships with major financial institutions through regular information sharing and constructive dialogue.
Therefore, the company expects continued support from key lenders, which should mitigate any significant adverse effects on its business operations and funding arrangements.
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