Liquidity and Financial Covenants of Borrowings and Commitment Lines
First written in FY2019. 13 of 28 entries say "Mitigated", first in FY2020-Q1. Latest entry: 2026-09-17.
Minkabu The Infonoid moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「With the consent of all lending financial institutions obtained on 15 June 2026, the original maturity date was extended under the agreement from 30 June 2026 to 30 June 2027.」
Although borrowings remained substantial, the maturity date was extended by 1 year with the consent of all financial institutions, and short-term borrowings also decreased by ¥228 million on a net basis during the fiscal year. Measures to address liquidity risk made further progress. - FY2026-H1WorsenedAnnual report
「As a result, at the end of the interim consolidated accounting period, borrowings due for repayment within 1 year remained substantial at ¥7,717.5 million compared with cash on hand of ¥905.232 million. The company therefore recognizes the existence of events that raise significant doubt about the going-concern assumption.」
Borrowings due for repayment within 1 year totaled ¥7,717.5 million, and the gap with cash on hand of ¥905.232 million remained. The reclassification of borrowings between current and non-current liabilities made the short-term repayment exposure explicit. - FY2025MaterialisedAnnual report
「Borrowings due for repayment within 1 year totaled ¥3,125 million, a substantial amount compared with cash on hand of ¥542.61 million,」
The liquidity position clearly showed that borrowings due for short-term repayment substantially exceeded cash on hand, requiring action regarding the financial covenants and rescheduling of repayments. - FY2025-H1WorsenedAnnual report
「Current liabilities at the end of the interim consolidated accounting period were ¥3,137.75 million, an increase of ¥403.585 million from the end of the previous consolidated fiscal year. This was mainly attributable to a ¥692 million increase in short-term borrowings, partly offset by a ¥200 million decrease in long-term borrowings due for repayment within 1 year, among other factors.」
Short-term borrowings increased by ¥692 million, bringing the drawn amount to ¥1,300 million and total commitments to ¥2,750 million. Cash and cash equivalents also decreased to ¥496.965 million, increasing liquidity exposure. - FY2024MaterialisedAnnual report
「With respect to item (2) of both agreements, the company breached the financial covenants during the consolidated fiscal year. After requesting that the relevant financial institutions waive application of the acceleration clauses, the company obtained written consent from all relevant financial institutions between the end of the consolidated fiscal year and the filing date confirming that the acceleration clauses would not be applied.」
A breach of the financial covenant prohibiting ordinary losses for 2 consecutive periods actually occurred, and the company obtained consent from the financial institutions not to apply the acceleration clauses. - FY2024-Q3WorsenedAnnual report
「Total overdraft and lending commitments: ¥2,500 million; drawn amount: ¥600 million; undrawn amount: ¥1,900 million」
Although total commitments remained unchanged at ¥2,500 million, the drawn amount increased from ¥200 million at the end of the previous consolidated fiscal year to ¥600 million. Short-term borrowings also increased by ¥408 million, again increasing borrowing and liquidity exposure. - FY2024-Q2MitigatedAnnual report
「This was attributable to a ¥745 million decrease in long-term borrowings through scheduled repayments and other factors.」
Long-term borrowings decreased by ¥745 million through scheduled repayments and other factors, while short-term borrowings also decreased by ¥292 million, reducing the drawn amount to zero. - FY2024-Q1MitigatedAnnual report
「This was mainly attributable to a ¥200 million decrease in short-term borrowings and a ¥128.547 million decrease in income taxes payable and other liabilities, partly offset by a ¥93.702 million increase in accrued expenses, among other factors.」
Short-term borrowings decreased by ¥200 million to zero, while long-term borrowings also decreased by ¥183.75 million through scheduled repayments. Lower drawn borrowings temporarily reduced liquidity exposure. - FY2023WorsenedAnnual report
「On 23 December 2022, the company entered into a syndicated loan agreement totaling ¥7.1 billion, with MUFG Bank, Ltd. as arranger. The agreement was intended to finance the acquisition of shares in livedoor under the share transfer agreement with LINE株式会社 dated 28 September 2022.」
The company entered into a ¥7.1 billion syndicated loan to finance the acquisition of livedoor, increasing long-term borrowings to ¥6,752.5 million and substantially increasing borrowing, financial covenant and liquidity exposure. - FY2023-Q3WorsenedAnnual report
「On 23 December 2022, the company entered into a syndicated loan agreement totaling ¥7.1 billion, with MUFG Bank, Ltd. as arranger. The agreement was intended to finance the acquisition of shares in livedoor under the share transfer agreement with LINE株式会社 dated 28 September 2022.」
The company drew a ¥7.1 billion syndicated loan to acquire the livedoor business, increasing long-term borrowings by ¥6,748.38 million from the end of the previous fiscal year. Borrowing, financial covenant and liquidity exposure increased substantially. - FY2023-Q2WorsenedAnnual report
「Total overdraft and lending commitments: ¥2,500 million; drawn amount: —; undrawn amount: ¥2,500 million」
Although the drawn amount was zero, total overdraft and lending commitments increased from ¥1,500 million at the end of the previous consolidated fiscal year to ¥2,500 million. In addition, long-term borrowings increased by ¥231.463 million. - FY2023-Q1WorsenedAnnual report
「This agreement refinances, through a syndicated arrangement, a ¥2.4 billion commitment line and a ¥1.33 billion term loan. During the nine-month period ended in the first quarter, the term loan was drawn.」
The company drew a ¥1.33 billion term loan under the syndicated loan, again increasing borrowing, financial covenant and liquidity exposure. The drawn amount under the commitment line, however, was zero. - FY2022MitigatedAnnual report
「This was mainly attributable to a ¥500 million decrease in short-term borrowings following repayment of borrowings under a commitment line for working capital, a ¥20 million decrease in bonds due for redemption within 1 year, and a ¥38.372 million decrease in long-term borrowings due for repayment within 1 year, partly offset by a ¥158.865 million increase in trade payables and an ¥88.017 million increase in income taxes payable and other liabilities.」
The company repaid ¥500 million in short-term borrowings under the commitment line, reducing the drawn amount to zero. Long-term borrowings also decreased. - FY2022-Q3MitigatedAnnual report
「This was mainly attributable to a ¥500 million decrease in short-term borrowings following repayment of borrowings under a commitment line for working capital, a ¥20 million decrease in bonds due for redemption within 1 year, and a ¥33.372 million decrease in long-term borrowings due for repayment within 1 year, partly offset by a ¥54.959 million increase in income taxes payable and other liabilities.」
The company repaid ¥500 million in short-term borrowings under the commitment line, reducing the drawn amount to zero. Borrowing and liquidity exposure declined further. - FY2022-Q1MitigatedAnnual report
「This was mainly attributable to a ¥500 million decrease in short-term borrowings following repayment of borrowings under a commitment line for working capital, and a ¥39.533 million decrease in trade payables.」
The company repaid ¥500 million in short-term borrowings under the commitment line, reducing the drawn amount at the end of the first quarter to zero. - FY2021WorsenedAnnual report
「Total overdraft limits and lending commitments: ¥1,500 million; drawn amount: ¥500 million; undrawn amount: ¥1,000 million」
The funding facility increased to ¥1,500 million, while ¥500 million in short-term borrowings was incurred through drawings under the commitment line. Long-term borrowings also reached ¥1,456.019 million. - FY2021-Q3WorsenedAnnual report
「Non-current liabilities were ¥1,542.435 million, an increase of ¥214.528 million from the end of the previous consolidated fiscal year. This was mainly attributable to a ¥240.509 million increase in long-term borrowings, partly offset by a ¥20 million decrease in bonds.」
Long-term borrowings increased by ¥240.509 million from the end of the previous consolidated fiscal year, increasing borrowing and liquidity exposure. - FY2021-Q1WorsenedAnnual report
「This was attributable to a ¥100 million increase in short-term borrowings, a ¥15.226 million decrease in long-term borrowings due within 1 year, a ¥28.668 million decrease in income taxes payable and other liabilities, and a ¥35.565 million decrease in other current liabilities.」
In addition to acquisition financing, ¥100 million in short-term borrowings was incurred, bringing the drawn amount at the end of the first quarter to ¥100 million. - FY2020-Q3WorsenedAnnual report
「At the end of December 2019, the company drew ¥1,300 million in long-term borrowings to fund the acquisition of shares in Prop Tech plus株式会社.」
Although the drawn amount had previously been zero, the company drew ¥1,300 million in long-term borrowings to fund the acquisition, increasing its borrowing and liquidity exposure. - FY2020-Q2MitigatedAnnual report
「Total overdraft and lending commitments: ¥650 million; drawn amount: —; undrawn amount: ¥650 million」
The company repaid ¥400 million in short-term borrowings, reducing the drawn amount to zero. Total commitments increased from ¥550 million to ¥650 million, while the financial covenants remained in effect. - FY2020-Q1MitigatedAnnual report
「Total overdraft and lending commitments: ¥550 million; drawn amount: —; undrawn amount: ¥550 million」
The company repaid ¥400 million in short-term borrowings through repayments under the commitment lines and other facilities, reducing the drawn amount to zero. Although total commitments increased to ¥550 million, the financial covenants remained in effect. - FY2019First statedAnnual report
「Under the lending commitment line agreement: (i) the amount of net assets on the standalone balance sheet at the end of each fiscal period after the agreement date must be maintained at 75% or more of the amount in the same period of the previous year; and (ii) ordinary profit or loss reported in the standalone income statement for each fiscal period after the agreement date must not be a loss for 2 consecutive periods.」
The total overdraft and commitment lines were ¥400 million, with ¥400 million drawn, and financial covenants require the maintenance of net assets and avoidance of ordinary losses for 2 consecutive periods.