Risk of breaching financial covenants under syndicated loans
First written in FY2016. 16 of 28 entries say "Mitigated", first in FY2017. Latest entry: 2026-11-13.
Gokurakuyu Holdings moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 70 companies on the "Worse" side.
62 other companies' latest entry also says "Mitigated".
- 2026-11-13MitigatedResults
「借入金返済により長期借入金が276百万円減少したこと等によるものであります。」
長期借入金の返済により、財務制限条項に関係する借入エクスポージャーがさらに縮小している。 - FY2026MitigatedAnnual report
「On 18 February 2026, the company entered into a syndicated loan agreement with an aggregate principal amount of ¥1,760 million. At the end of the consolidated fiscal year, borrowings under this agreement comprised ¥471.432 million in current maturities of long-term borrowings and ¥1,152.826 million in long-term borrowings, for a total of ¥1,624.258 million.」
Borrowings subject to financial covenants decreased from ¥2,239.302 million at the end of the previous fiscal year to ¥1,624.258 million. The company newly arranged a syndicated loan to fund the opening of a store in Adachi-Kohoku. - FY2026-H1MitigatedAnnual report
「This was mainly due to a ¥747 million decrease in long-term borrowings resulting from ¥276 million in scheduled repayments and ¥471 million in early repayments, as well as decreases of ¥162 million in advances received due to the use of prepaid ticket books and ¥224 million in accounts payable, among other factors.」
Scheduled repayments of ¥276 million and early repayments of ¥471 million reduced long-term borrowings by ¥747 million, further reducing borrowing exposure subject to the financial covenants. - FY2025MitigatedAnnual report
「Long-term borrowings decreased by ¥1,023 million through ¥552 million in scheduled repayments and ¥471 million in early repayments.」
Scheduled and early repayments of long-term borrowings reduced borrowings subject to the financial covenants from ¥3,182.142 million at the end of the previous fiscal year to ¥2,239.302 million. The financial covenants themselves remain in the agreements. - FY2025-H1MitigatedAnnual report
「This was mainly due to a ¥747 million decrease in long-term borrowings resulting from ¥276 million in scheduled repayments and ¥471 million in early repayments.」
Although there is no direct reference to the financial covenants, scheduled and early repayments reduced long-term borrowings by ¥747 million, lowering borrowing exposure. - FY2024MitigatedAnnual report
「On 26 December 2023, the company entered into syndicated loan agreements totaling ¥3.3 billion with several financial institutions, as described below. This also restored normal financial transactions.」
The company refinanced ¥3.3 billion in total, repaid borrowings that had been subject to repayment deferrals and restored normal financial transactions. Borrowings subject to financial covenants also decreased to ¥3,182 million. - FY2024-Q3MitigatedAnnual report
「On 26 December 2023, the company entered into syndicated loan agreements totaling ¥3.3 billion with several financial institutions, as described below. This also restored normal financial transactions.」
The company arranged syndicated loans totaling ¥3.3 billion to repay borrowings under repayment deferrals, restoring normal financial transactions with financial institutions that had continued following the financial covenant breach. - FY2024-Q2MitigatedAnnual report
「This was mainly due to a ¥1,247 million decrease in short-term and long-term borrowings through repayments.」
Repayments of borrowings reduced borrowing exposure subject to the financial covenants by ¥1,247 million from the end of the previous consolidated fiscal year. Meanwhile, repayment deferrals from financial institutions and support following the financial covenant breach continue. - FY2024-Q1MitigatedAnnual report
「This was mainly due to a ¥498 million decrease in short-term and long-term borrowings through repayments and a ¥244 million decrease in advances received as more customers used prepaid ticket books. To restore normal financial transactions, the company will continue negotiations with its lending financial institutions using domestic profits generated by improved performance and funds raised. The company has obtained consent to defer repayment of borrowings until 31 December 2023. It has also obtained consent to defer until 31 December 2023 the acceleration of long-term borrowings that breached the financial covenants.」
Borrowings decreased by ¥498 million through repayments, reducing borrowing exposure. However, the company has received a waiver until 31 December 2023 of acceleration on long-term borrowings that breached the financial covenants, and the breach and dependence on support from financial institutions continue. - FY2023Breach remains; borrowings reducedAnnual report
「Although the company was in breach of the relevant financial covenants at the end of the consolidated fiscal year, it maintains close relationships with its principal lending financial institutions and continues to hold regular, constructive discussions with them. Accordingly, the company believes it will continue to receive support from its principal lending financial institutions.」
The financial covenant breach and dependence on support from financial institutions continue, while borrowings subject to the covenants decreased from ¥5,660 million at the end of the previous fiscal year to ¥4,609 million. - FY2023-Q3MitigatedAnnual report
「This was mainly due to a ¥279 million decrease in property, plant and equipment resulting from depreciation and other factors, despite the acquisition of buildings and structures for refurbishing stores in China, and a ¥967 million decrease in cash and deposits due partly to repayments of borrowings.」
Partial repayments of borrowings reduced the borrowing exposure subject to the financial covenants. However, the disclosure that support from financial institutions is not guaranteed until performance and financial condition return to normal remains in place. - FY2023-Q2MitigatedAnnual report
「This was mainly due to a ¥1,255 million decrease in borrowings resulting from repayments and a ¥432 million decrease in other current liabilities due to the payment of consumption taxes and other items.」
Borrowings decreased by ¥1,255 million through repayments, reducing the borrowing exposure subject to the financial covenants. However, because support from financial institutions is not guaranteed until financial condition returns to normal, significant uncertainty following the financial covenant breach remains. - FY2023-Q1WorsenedAnnual report
「In addition to these circumstances, although the company has obtained the understanding of all its lending financial institutions regarding support for its interest-bearing debt, including repayment deferrals, such support is not guaranteed until its performance and financial condition return to normal. Accordingly, the group recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」
Although the company has obtained the financial institutions' understanding regarding repayment deferrals, the disclosure states that support is not guaranteed until performance and financial condition return to normal, clarifying the cash-flow risk following the financial covenant breach. - FY2022RestatedAnnual report
「Although the company was in breach of the relevant financial covenants at the end of the consolidated fiscal year, it maintains close relationships with its principal lending financial institutions and continues to hold regular, constructive discussions with them. Accordingly, the company believes it will continue to receive support from its principal lending financial institutions.」
The company has reconfirmed the continuing financial covenant breach and its expectation of continued support from financial institutions following discussions with them. - FY2022-Q3RestatedAnnual report
「This resulted in another breach of the financial covenants attached to the syndicated loan agreements, but following discussions with its lending financial institutions, the company has obtained their consent to continue deferring repayments for the time being.」
The renewed financial covenant breach and repayment deferrals granted by financial institutions for the time being remain in place. No new breach or change to the deferral terms has been disclosed. - FY2022-Q2RestatedAnnual report
「This resulted in another breach of the financial covenants attached to the syndicated loan agreements, but following discussions with its lending financial institutions, the company has obtained their consent to continue deferring repayments for the time being.」
The financial covenant breach and repayment deferrals granted by financial institutions remain in place. No new breach or change to the deferral terms has been disclosed. - FY2022-Q1WorsenedAnnual report
「In the previous consolidated fiscal year, the company recorded a net loss attributable to owners of the parent of ¥3,081 million, mainly as a result of recording extraordinary losses, including impairment losses. This resulted in another breach of the financial covenants attached to the syndicated loan agreements, but following discussions with its lending financial institutions, the company has obtained their consent to continue deferring repayments for the time being.」
Following the ¥3,081 million net loss attributable to owners of the parent in the previous consolidated fiscal year, another financial covenant breach occurred, and repayment deferrals remain in place. - FY2021-Q3RestatedAnnual report
「To secure liquidity, the company negotiated with all of its lending financial institutions while using its overdraft facility, and reviewed the repayment terms for borrowings coming due in line with the status of store reopenings, customer traffic and profitability.」
To manage cash flow following the financial covenant breach, the company continues to use overdraft facilities, consult with financial institutions and review repayment terms in line with the status of store reopenings and other factors. - FY2021-Q2MitigatedAnnual report
「The Company discussed the matter with all of its lending financial institutions and revised the repayment terms for loan agreements reaching maturity, taking into account the future status of store reopenings, customer traffic, and profitability.」
Although the financial covenant breach arising from the deterioration in performance in the previous consolidated fiscal year continues to be disclosed, the company is reviewing the terms of borrowings falling due for repayment and seeking continued support from financial institutions to address near-term cash-flow needs. - FY2021-Q1MaterialisedAnnual report
「As a result of the deterioration in performance, the Company breached the financial covenants attached to its syndicated loan agreement. However, following discussions with its lending financial institutions, they agreed to grant a deferral of repayments for the time being.」
The financial covenants, which had previously been reported as not breached, were actually breached following the deterioration in performance in the previous consolidated fiscal year, and the Company obtained a temporary repayment deferral from its financial institutions. - FY2020-Q3WorsenedAnnual report
「Total liabilities increased by ¥1,822 million from the end of the previous consolidated fiscal year to ¥16,453 million. This was mainly due to a ¥1,451 million increase in long-term borrowings.」
Although no breach of the financial covenants is reported, long-term borrowings increased by ¥1,451 million, expanding borrowing exposure subject to the financial covenants. - FY2019-Q1WorsenedAnnual report
「(1) Total amount arranged: ¥3.08 billion (2) Contract date: 8 August 2018 (3) Commitment period: 13 August 2018 to 31 July 2019 (4) Borrowing period: 7 years (5) Financial covenants: ① At the end of each fiscal year from the fiscal year ending March 2019 onward, total net assets in the consolidated balance sheet must be maintained at or above 75% of the higher of (i) total net assets in the consolidated balance sheet at the end of the fiscal year ended March 2018 or (ii) total net assets in the consolidated balance sheet at the end of the immediately preceding fiscal year. ② At the end of each fiscal year from the fiscal year ending March 2019 onward, the Company must not record an ordinary loss for two consecutive fiscal years.」
The Company entered into a ¥3.08 billion syndicated loan agreement to finance the construction of hot spring bathing facilities and hot spring inns in China. The agreement includes financial covenants requiring the maintenance of net assets and avoidance of ordinary losses for two consecutive fiscal years. Exposure to borrowings and financial covenants is increasing. - FY2018WorsenedAnnual report
「The financial covenants are described in “Part 5. Accounting Status, 1. Consolidated Financial Statements, [Notes] (Consolidated Balance Sheet)” and “Part 5. Accounting Status, 2. Financial Statements, [Notes] (Balance Sheet),” but the Company had not breached the financial covenants as of the end of the consolidated fiscal year.」
Although there was no breach of the financial covenants, the subject borrowings increased from ¥1,924 million in the previous fiscal year to ¥3,864 million, expanding the risk exposure. - FY2017MitigatedAnnual report
「The borrowings outstanding under this agreement at the end of the consolidated fiscal year comprised ¥360 million in current maturities of long-term borrowings and ¥1,564 million in long-term borrowings, totaling ¥1,924 million. Regarding the financial covenants, the Company had not breached them as of the end of the consolidated fiscal year.」
It states that the financial covenants had not been breached and that the subject borrowings declined from ¥2,284 million in the previous fiscal year to ¥1,924 million. - FY2016First statedAnnual report
「The syndicated loan financing is subject to financial covenants concerning the maintenance of net assets and profit. If these covenants are breached, the Company's results and cash flow could be affected by higher interest rates, acceleration of repayment obligations, and other consequences.」
It states that the subject borrowings totaled ¥2,284 million at the end of the consolidated fiscal year and that the financial covenants had not been breached as of that date.