High Interest-Bearing Debt and Financial Covenants
First written in FY2016. 12 of 30 entries say "Mitigated", first in FY2019-Q3. Latest entry: 2026-10-01.
Alpico Holdings moved to the "Worse" side of this theme in 2021, 4 years before the typical company in this theme (2025).
39 other companies' latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「Non-current liabilities were ¥25,795,778 thousand, an increase of ¥1,760,021 thousand from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥1,820,486 thousand in long-term borrowings.」
Long-term borrowings increased by ¥1,820,486 thousand to ¥18,260,794 thousand, expanding financial exposure associated with high interest-bearing debt. - FY2026-H1WorsenedAnnual report
「Non-current liabilities were ¥24,839,300 thousand, an increase of ¥803,543 thousand from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥1,117,353 thousand in long-term borrowings from financing and a decrease of ¥165,347 thousand in lease obligations, among other factors.」
Financing increased long-term borrowings by ¥1,117,353 thousand, expanding financial exposure associated with high interest-bearing debt. Meanwhile, total liabilities decreased by ¥223,692 thousand. - FY2025MitigatedAnnual report
「Non-current liabilities were ¥24,035,757 thousand, an increase of ¥40,284 thousand from the end of the previous consolidated fiscal year. This was mainly due to a decrease of ¥408,888 thousand in long-term borrowings and an increase of ¥448,733 thousand in lease obligations, among other factors.」
Long-term borrowings decreased by ¥408,888 thousand, while net assets also increased. Although financial-covenant risk remains, the financial position has improved from the period through the previous fiscal year when covenant-breach concerns persisted. - FY2024MitigatedAnnual report
「At the end of the current consolidated fiscal year, the situation had been resolved under the syndicated loan agreement entered into on 27 May 2016, with outstanding borrowings of ¥2,033,556 thousand. Only the syndicated loan agreement entered into on 27 September 2017, with outstanding borrowings of ¥192,000 thousand and scheduled to be fully repaid by the end of September 2024, remained in breach of financial covenants.」
The situation was resolved under 1 of the agreements that had been in breach of financial covenants, and the remaining agreement in breach was reduced to outstanding borrowings of ¥192,000 thousand. The Company had obtained the financial institutions' consent not to exercise their rights and judges that the material event relating to the going-concern assumption has been resolved. - FY2024-Q3MitigatedAnnual report
「As the Group worked to transform its management structure to withstand changes in the operating environment, it recorded quarterly net income attributable to owners of the parent of ¥1,606,075 thousand for the nine months ended the third quarter of the current consolidated fiscal year. At the end of the current consolidated fiscal year, only the syndicated loan agreement entered into on 27 September 2017, with outstanding borrowings of ¥300,000 thousand and scheduled to be fully repaid by the end of September 2024, may remain in breach of the financial covenant requiring consolidated net assets at the end of the current consolidated fiscal year to be maintained at not less than 75% of consolidated net assets at the end of the fiscal year ended March 2017.」
The remaining agreement subject to financial-covenant concerns was reduced to 1 agreement with outstanding borrowings of ¥300,000 thousand, down from ¥408,000 thousand in the previous disclosure. Another borrowing agreement is expected to be cleared of the breach, and the Company judges that there is no material concern regarding near-term cash flow and that the material event relating to the going-concern assumption has been resolved. - FY2024-Q2MitigatedAnnual report
「At the end of the second quarter of the current consolidated fiscal year, the situation had been resolved under the syndicated loan agreement entered into on 27 May 2016, with outstanding borrowings of ¥2,533,556 thousand. Only the syndicated loan agreement entered into on 27 September 2017, with outstanding borrowings of ¥408,000 thousand and scheduled to be fully repaid by the end of September 2024, remained in breach of the financial covenant requiring consolidated net assets at the end of the second quarter of the current consolidated fiscal year to be maintained at not less than 75% of consolidated net assets at the end of the fiscal year ended March 2017.」
The situation was resolved under 1 of the 2 agreements that had been in breach of financial covenants, reducing the breach status to 1 agreement with outstanding borrowings of ¥408,000 thousand. - FY2024-Q1SoftenedAnnual report
「As a result, some borrowing agreements for the current consolidated fiscal year may breach financial covenants, and events or circumstances exist that could give rise to substantial doubt about the Group's ability to continue as a going concern.」
Whereas a breach of financial covenants was explicitly disclosed at the end of the previous fiscal year, the first quarter describes the status as a risk of breach. However, events or circumstances giving rise to substantial doubt about the going-concern assumption continue to be disclosed. - FY2023MaterialisedAnnual report
「At the end of the current consolidated fiscal year, the Company was in breach of the financial covenant described in ① above, but had obtained the financial institutions' consent not to exercise their rights relating to acceleration of the borrowings.」
At the full-year end, breaches of financial covenants relating to net assets and other matters occurred under multiple syndicated loan agreements. The Company had obtained the financial institutions' consent not to exercise their rights relating to acceleration. - FY2023-Q3SoftenedAnnual report
「As the novel coronavirus disease (hereinafter, the “novel infection”) became endemic, a full recovery in operating performance was not achieved. Some borrowing agreements may still be in breach of financial covenants, and events or circumstances exist that could give rise to substantial doubt about the Group's ability to continue as a going concern.」
Whereas a breach of financial covenants was explicitly disclosed in the previous quarter, this disclosure describes the status as a possibility of breach. However, it continues to state that events or circumstances giving rise to substantial doubt about the going-concern assumption exist. - FY2023-Q2MaterialisedAnnual report
「Some borrowing agreements remain in breach of financial covenants, and events or circumstances exist that could give rise to substantial doubt about the Group's ability to continue as a going concern.」
As in the previous quarter, the disclosure explicitly identifies breaches of financial covenants under some borrowing agreements. It states that a waiver of the right to demand acceleration is expected and that there is no material concern regarding cash flow. - FY2023-Q1SoftenedAnnual report
「As a result, some borrowing agreements for the current consolidated fiscal year may breach financial covenants, and events or circumstances exist that could give rise to substantial doubt about the Group's ability to continue as a going concern.」
Whereas an actual breach of financial covenants was disclosed at the end of the previous fiscal year, the current quarter describes the status as a risk of breach under some borrowing agreements. Events that could give rise to substantial doubt about the going-concern assumption continue to be disclosed. - FY2022MaterialisedAnnual report
「At the end of the current consolidated fiscal year, the Company was in breach of the financial covenant described in ③ above, but had obtained the financial institutions' consent not to exercise their right to accelerate the borrowings.」
At the full-year end, breaches of financial covenants, including those relating to two consecutive periods of ordinary losses, also occurred under multiple syndicated loans and other arrangements, and the Company had obtained the financial institutions' consent not to exercise their rights. - FY2022-Q2MaterialisedAnnual report
「The Company is in breach of the financial covenants described in ③ and ④ above, but expects to obtain a waiver of the lenders' right to demand acceleration.」
Breaches of financial covenants, including those relating to two consecutive periods of ordinary losses and the net debt/EBITDA ratio, actually occurred under multiple syndicated loan agreements and other arrangements. The disclosure states that waivers of enforcement are expected, while identifying these breaches as events giving rise to substantial doubt about the going-concern assumption. - FY2022-Q1WorsenedAnnual report
「As a result, some borrowing agreements for the current consolidated fiscal year may breach financial covenants, and events or circumstances exist that raise substantial doubt about the Group's ability to continue as a going concern.」
The Company recorded an ordinary loss of ¥622,963 thousand and a quarterly net loss of ¥780,003 thousand in the first quarter, while net assets decreased by ¥998,016 thousand from the end of the previous fiscal year. This explicitly raised concerns about breaches of financial covenants under some borrowing agreements and substantial doubt about the going-concern assumption. - FY2021-Q3WorsenedAnnual report
「Total liabilities at the end of the third quarter of the current consolidated fiscal year were ¥51,994,670 thousand, an increase of ¥5,017,877 thousand from the end of the previous consolidated fiscal year.」
Total liabilities increased by ¥5,017,877 thousand from the end of the previous fiscal year. On the balance sheet, long-term borrowings also increased from ¥21,697,013 thousand to ¥23,045,440 thousand, expanding financial exposure. - FY2021-Q2WorsenedAnnual report
「Total liabilities at the end of the second quarter of the current consolidated fiscal year were ¥48,523,619 thousand, an increase of ¥1,546,826 thousand from the end of the previous consolidated fiscal year. This was mainly due to changes in borrowings resulting from new borrowing and repayments.」
Total liabilities increased by ¥1,546,826 thousand from the end of the previous consolidated fiscal year due to borrowings and other factors, expanding the financial exposure associated with high interest-bearing debt. - FY2021-Q1WorsenedAnnual report
「Total liabilities at the end of the first quarter of the current consolidated fiscal year were ¥49,488,666 thousand, an increase of ¥2,511,874 thousand from the end of the previous consolidated fiscal year. This was mainly due to an increase in long-term borrowings due within one year resulting from financing.」
Liabilities had been reduced through repayment of borrowings through the previous fiscal year, but total liabilities increased by ¥2,511,874 thousand this quarter due to an increase in long-term borrowings due within one year and other items resulting from financing. - FY2020MitigatedAnnual report
「Total liabilities were ¥46,976,792 thousand, a decrease of ¥7,443,181 thousand from the end of the previous consolidated fiscal year. This was mainly due to repayment of borrowings and a decrease in accounts payable resulting from the holiday effect.」
Total liabilities decreased by ¥7,443,181 thousand from the end of the previous fiscal year due to repayment of borrowings and other factors, indicating the status of the response to high interest-bearing debt. - FY2020-Q3MitigatedAnnual report
「Total liabilities at the end of the third quarter of the current consolidated fiscal year were ¥53,323,554 thousand, a decrease of ¥1,096,419 thousand from the end of the previous consolidated fiscal year. This was mainly due to a decrease in borrowings resulting from repayments and other factors.」
Total liabilities decreased by ¥1,096,419 thousand from the end of the previous fiscal year due to repayment of borrowings and other factors, documenting the status of the response to high interest-bearing debt. - FY2020-Q2MitigatedAnnual report
「Total liabilities at the end of the second quarter of the current consolidated fiscal year were ¥50,056,052 thousand, a decrease of ¥4,363,921 thousand from the end of the previous consolidated fiscal year. This was mainly due to a decrease in accounts payable because the last day of the previous consolidated fiscal year was a holiday, as well as a decrease in borrowings resulting from repayments.」
Total liabilities decreased by ¥4,363,921 thousand from the end of the previous consolidated fiscal year due to repayment of borrowings and other factors, documenting the status of the response to high interest-bearing debt. - FY2019MitigatedAnnual report
「Total liabilities were ¥54,419,973 thousand, a decrease of ¥3,669,826 thousand from the end of the previous consolidated fiscal year. This was mainly due to repayment of borrowings and other factors.」
Total liabilities decreased by ¥3,669,826 thousand from the end of the previous fiscal year due to repayment of borrowings and other factors, indicating progress in reducing interest-bearing debt. - FY2019-Q3MitigatedAnnual report
「Total liabilities at the end of the third quarter of the current consolidated fiscal year were ¥56,607,955 thousand, a decrease of ¥1,481,844 thousand from the end of the previous consolidated fiscal year. This was mainly due to a decrease in borrowings resulting from repayments.」
Total liabilities decreased by ¥1,481,844 thousand from the end of the previous fiscal year due to repayment of borrowings, documenting the response to high interest-bearing debt. - FY2017RestatedAnnual report
「The Group raises funds for the capital and working-capital needs of each Group company through borrowings from financial institutions, with the Company as the debtor, but interest-bearing debt accounts for a high proportion of the Group's total assets.」
The disclosure continues to identify the risks associated with centralized borrowing by the holding company, a high interest-bearing debt ratio, rising interest rates and financial covenants. - FY2016First statedAnnual report
「Interest-bearing debt accounts for a high proportion of the total assets of the Group, and the Group's financial position and operating results may be affected if interest rates rise as a result of future changes in economic conditions.」
In addition to interest-rate risk, the disclosure describes financial covenants relating to net assets, consecutive ordinary losses and the net debt/EBITDA ratio.