Reliance on Interest-Bearing Debt and Rising Interest Rate Risk Associated with Construction of the Sakura Plant
First written in FY2018. 20 of 28 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2027-H1MitigatedAnnual report
「As of the end of the interim consolidated accounting period, interest-bearing debt stood at ¥2,133.842 million, comprising short-term borrowings of ¥300 million, current maturities of long-term borrowings of ¥1,003.408 million and long-term borrowings of ¥830.434 million. This was high relative to liquidity on hand, consisting of cash and cash equivalents of ¥1,101.525 million. In addition, after discussing its financial condition, funding plans and other matters with the relevant financial institutions, the Group obtained their agreement not to exercise their rights to accelerate the loans.」
Interest-bearing debt fell sharply from ¥7,409.396 million at the previous fiscal year-end to ¥2,133.842 million as repayments progressed following the sale of fixed assets, reducing the Group’s reliance on debt. However, interest-bearing debt remains higher than liquidity on hand, and the financial institutions’ agreement not to exercise their rights to accelerate the loans remains in place. - 2026-07-13RestatedOccurring Fact
「Certain borrowings are subject to financial covenants. However, following discussions with all relevant financial institutions regarding our financial position and funding plans, we have obtained their agreement not to exercise their rights to declare a loss of the benefit of time. We will continue to maintain close relationships with these financial institutions and hold regular discussions to ensure their continued support.」
財務制限条項への抵触と、金融機関から期限の利益喪失の権利行使をしない旨の同意を得ている状態が継続している。 - FY2026WorsenedAnnual report
「The Group financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions. Interest-bearing debt stood at ¥7,409.396 million as of the end of the consolidated fiscal year, equivalent to 65.9% of total assets. Certain borrowings are subject to financial covenants, but after discussing its financial condition, funding plans and other matters with all relevant financial institutions, the Group obtained their agreement not to exercise their rights to accelerate the loans.」
Although the balance of interest-bearing debt declined slightly from the previous fiscal year-end, its ratio to total assets increased from 63.1% in the previous fiscal year to 65.9%. The breach of the financial covenants and the financial institutions’ agreement not to exercise their rights to accelerate the loans also continued. - FY2026-H1RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the interim accounting period. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants and the arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans continued. - FY2025-H1RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the interim accounting period. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants and the arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans continued. - FY2024WorsenedAnnual report
「The Group financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions. Interest-bearing debt stood at ¥7,452.798 million as of the end of the consolidated fiscal year, equivalent to 63.1% of total assets. Certain borrowings are subject to financial covenants, but after discussing its financial condition, funding plans and other matters with all relevant financial institutions, the Group obtained their agreement not to exercise their rights to accelerate the loans.」
Although the balance of interest-bearing debt declined slightly from the previous fiscal year-end, its ratio to total assets increased from 58.4% in the previous fiscal year to 63.1%. The breach of the financial covenants and the financial institutions’ agreement not to exercise their rights to accelerate the loans continued. - FY2024-Q3RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the third quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants and the arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans continued. - FY2024-Q1RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the first quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants and the arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans continued. No material change from the previous disclosure was indicated. - FY2023WorsenedAnnual report
「The Group financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions. Interest-bearing debt stood at ¥7,462.798 million as of the end of the consolidated fiscal year, equivalent to 58.4% of total assets. Certain borrowings are subject to financial covenants, but after discussing its financial condition, funding plans and other matters with all relevant financial institutions, the Group obtained their agreement not to exercise their rights to accelerate the loans.」
Although the balance of interest-bearing debt declined slightly from the previous fiscal year, its ratio to total assets increased from 55.7% in the previous fiscal year to 58.4%. The breach of the financial covenants and the financial institutions’ agreement not to exercise their rights to accelerate the loans also continued. - FY2023-Q3RestatedAnnual report
「However, as of the end of the third quarter of the current consolidated fiscal year, interest-bearing debt stood at ¥7,472.798 million, comprising short-term borrowings of ¥257.039 million, current maturities of long-term borrowings of ¥3,165.497 million and long-term borrowings of ¥4,050.261 million. This was high relative to the Group’s liquidity on hand, consisting of cash and deposits of ¥2,469.056 million, and the Group continues to request support from its lending institutions on the premise of implementing management improvements.」
Interest-bearing debt remains high relative to liquidity on hand, and the Group continues to require ongoing support from its financial institutions. - FY2023-Q2RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the second quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants continued as of the end of the second quarter. The arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans also continued. - FY2023-Q1RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the first quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants and the arrangement under which the financial institutions agreed not to exercise their rights to accelerate the loans continued as of the end of the current quarter. - FY2022RestatedAnnual report
「The Group financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions. Interest-bearing debt stood at ¥7,482.798 million as of the end of the consolidated fiscal year, equivalent to 55.7% of total assets. Certain borrowings are subject to financial covenants, but after discussing its financial condition, funding plans and other matters with all relevant financial institutions, the Group obtained their agreement not to exercise their rights to accelerate the loans.」
The Group’s reliance on interest-bearing debt and the risk of breaching its financial covenants continue to be disclosed. Interest-bearing debt represented 55.7% of total assets at the fiscal year-end, and the Group obtained the financial institutions’ agreement not to exercise their rights to accelerate the loans. - FY2022-Q3RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the third quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants continued as of the end of the third quarter. The arrangement under which the relevant financial institutions agreed not to exercise their rights to accelerate the loans also continued. - FY2022-Q2RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the second quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants continued as of the end of the second quarter. However, the Group obtained the relevant financial institutions’ agreement not to exercise their rights to accelerate the loans. - FY2022-Q1RestatedAnnual report
「The Group was in breach of the above financial covenants as of the end of the first quarter of the current fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
The breach of the financial covenants continued as of the end of the current quarter. However, the Group obtained the relevant financial institutions’ agreement not to exercise their rights to accelerate the loans. - FY2021MaterialisedAnnual report
「The Group was in breach of the above financial covenants as of the end of the consolidated fiscal year. However, after discussing its financial condition, funding plans and other matters with all relevant financial institutions, it obtained their agreement not to exercise their rights to accelerate the loans.」
An actual breach of the financial covenants was explicitly stated. However, the Group obtained the financial institutions’ agreement not to exercise their rights to accelerate the loans. - FY2021-Q3RestatedAnnual report
「Furthermore, as of the end of the consolidated fiscal year, there is a risk that the Group may breach the financial covenants under its loan agreements with its lending institutions. These circumstances have given rise to conditions that may raise significant doubt about the Group’s ability to continue as a going concern. However, as of the end of the third quarter of the current consolidated fiscal year, the Group was not in breach of the above financial covenants.」
The risk of breaching the financial covenants continues to be disclosed, but the Group was not actually in breach as of the end of the third quarter. - FY2021-Q2RestatedAnnual report
「In addition, at the end of the current consolidated fiscal year, there was a possibility that the group might breach the financial covenants in the loan agreements entered into with its relationship banks. These circumstances have created situations that may raise material doubt about the going-concern assumption. However, the group had not breached the above financial covenants as of the end of the second quarter of the current consolidated fiscal year.」
The possibility of breaching financial covenants continues to be stated, but no actual breach had occurred as of the end of the second quarter. - FY2021-Q1WorsenedAnnual report
「In addition, at the end of the current consolidated fiscal year, there was a possibility that the group might breach the financial covenants in the loan agreements entered into with its relationship banks. These circumstances have created situations that may raise material doubt about the going-concern assumption. However, the group had not breached the above financial covenants as of the end of the first quarter of the current consolidated fiscal year.」
In addition to dependence on interest-bearing debt and interest rate rise risk, the possibility of breaching financial covenants was identified. However, it is stated that no breach had occurred as of the end of the first quarter. - FY2020WorsenedAnnual report
「The group has financed construction costs for the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds. Although it made substantial repayments at the end of the current consolidated fiscal year, its dependence on interest-bearing debt remains high. If current interest rate levels rise substantially, or if the group's operating performance deteriorates significantly and it breaches financial covenants, the lending financial institutions may demand accelerated repayment of the relevant borrowings, including full repayment following loss of the benefit of time, which could affect the group's operating performance and financial position.」
Although interest-bearing debt was substantially repaid, dependence on it remains high. In addition to the existing interest rate rise risk, the risk of loss of the benefit of time and accelerated repayment if financial covenants are breached was identified. - FY2020-Q3RestatedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
Dependence on interest-bearing debt arising from financing the construction of the Sakura Plant and the policy of fixing most interest rates to limit the impact continue. - FY2020-Q2RestatedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
Dependence on interest-bearing debt arising from financing the construction of the Sakura Plant and the policy of fixing most interest rates to limit the impact continue. - FY2020-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
It is summarized that there have been no material changes regarding dependence on interest-bearing debt and interest rate rise risk associated with construction of the Sakura Plant. - FY2019RestatedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
The use of borrowings and corporate bonds to finance construction of the Sakura Plant has resulted in high dependence on interest-bearing debt, and the policy of fixing most interest rates to limit the impact continues to be described. - FY2019-Q3RestatedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
The use of borrowings and corporate bonds to finance construction of the Sakura Plant has resulted in high dependence on interest-bearing debt, and the policy for addressing interest rate rise risk continues to be described. - FY2019-Q2RestatedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
The use of borrowings and corporate bonds to finance construction of the Sakura Plant has resulted in high dependence on interest-bearing debt, and the policy for addressing interest rate rise risk continues to be described. - FY2018First statedAnnual report
「The group has financed the construction costs of the Sakura Plant through borrowings from multiple financial institutions and the issuance of corporate bonds, and its dependence on interest-bearing debt is high. Most of the interest rates on its borrowings and bonds are fixed, and the group is working to minimize the impact of potential future interest rate rises. However, a substantial increase from current interest rate levels could affect the group's operating performance and financial position.」
The use of borrowings and corporate bonds to finance construction of the Sakura Plant has resulted in a high dependence on interest-bearing debt, and the impact of a substantial rise in interest rates on operating performance and financial position was newly identified as a risk.