Going-concern risk related to short-term borrowings and insufficient liquidity
First written in FY2023-Q3. 10 of 10 entries say "Mitigated", first in FY2023-Q3. Latest entry: FY2027-H1.
The whole theme swung hardest in 2023: 2 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「On 29 July 2026, we entered into a borrowing and refinancing agreement for a syndicated loan arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Ltd. and Development Bank of Japan Inc., and drew down the loan on 31 July of the same year.」
The repayment date for ¥20 billion was extended to 30 July 2027, while ¥5.5 billion was refinanced with repayment in 2 instalments through 31 July 2028. Short-term borrowings remain outstanding, but liquidity management has progressed through the staggering and extension of repayment dates. - 2026-08-07MitigatedResults
「当社は、株式会社みずほ銀行、株式会社三井住友銀行、株式会社りそな銀行、株式会社日本政策投資銀行をアレンジャーとするシンジケートローンの借入（借換）契約を2026年７月29日に締結し、2026年７月31日に実行いたしました。」
20,000百万円の借入を2027年7月30日期限へ、5,500百万円の借入を2028年7月31日期限へ借り換え、返済期限を延長した。 - FY2026MitigatedAnnual report
「In addition, we entered into a financing agreement focused on aircraft prepayments with アトランティス・アビエーション株式会社 in June 2025, a commitment line agreement with Aozora Bank,Ltd. in August 2025, and a syndicated commitment line agreement arranged by 株式会社横浜銀行 in March 2026.」
Although ¥20 billion in short-term borrowings remains outstanding, we expanded our means of securing liquidity by adding an agreement for aircraft prepayments and multiple commitment lines. - FY2026-H1MitigatedAnnual report
「On 28 July 2025, we entered into a borrowing and refinancing agreement for a syndicated loan arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Ltd. and Development Bank of Japan Inc., and drew down the loan on 31 July of the same year.」
The ¥20 billion borrowing was refinanced on 31 July 2025 under an agreement setting 31 July 2026 as the repayment date. Short-term borrowings remain outstanding, but the extension of the repayment date continues to address liquidity risk. - FY2025-H1MitigatedAnnual report
「On 26 July 2024, we entered into a borrowing and refinancing agreement for a syndicated loan arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Ltd. and Development Bank of Japan Inc., and drew down the loan on 31 July of the same year.」
The ¥20 billion refinancing agreement was executed, extending the borrowing term beyond the original repayment date to 31 July 2025. - FY2024MitigatedAnnual report
「In July 2022, we borrowed ¥30 billion, with a one-year term, arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Ltd. and Development Bank of Japan Inc. to strengthen our financial position, which had been impaired by the spread of COVID-19. In July 2023, we refinanced this amount, setting a three-year term for ¥10 billion and a one-year term for ¥20 billion.」
The annual report confirms that the ¥30 billion borrowing was refinanced, with ¥10 billion given a three-year term and ¥20 billion a one-year term. - FY2024-Q2MitigatedAnnual report
「Borrowing A (1) Total borrowings: ¥10 billion (3) Drawdown date: 31 July 2023 (4) Repayment date: 31 July 2026」
Following the refinancing, the disclosed borrowing balance comprised ¥20 billion in short-term borrowings, ¥1 billion in current portion of long-term borrowings and ¥10 billion in long-term borrowings. The repayment date for part of Borrowing A has been confirmed as extending to 2026. - FY2024-Q1MitigatedAnnual report
「On 27 July 2023, we entered into a borrowing and refinancing agreement for a syndicated loan arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Ltd. and Development Bank of Japan Inc., and drew down the loan on 31 July of the same year.」
We executed a refinancing agreement for ¥30 billion in short-term borrowings. Of this amount, ¥10 billion became repayable on 31 July 2026, partially mitigating liquidity risk by extending the repayment date. However, the remaining ¥20 billion is still repayable on 31 July 2024. - FY2023MitigatedAnnual report
「As these financings secured a certain level of funds, the company terminated the commitment line agreement arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and Resona Bank, Ltd., and repaid a ¥2 billion capital-subordinated loan borrowed from Development Bank of Japan Inc.」
The company secured funds through the public offering and other measures, terminated the commitment line and repaid the ¥2 billion capital-subordinated loan. Meanwhile, ¥30 billion in short-term borrowings remains outstanding. - FY2023-Q3MitigatedAnnual report
「At the end of the cumulative third quarter accounting period, we determined that the events giving rise to significant doubt about the going-concern assumption had been resolved, in light of the significant recent recovery in business performance and the funds raised through the listing. However, the balance sheet at the end of the cumulative third quarter accounting period showed a current ratio of 50.1%, with current liabilities exceeding current assets. This was mainly due to short-term borrowings of ¥30,000 million, for which the borrowing period was set at 1 year in consideration of interest and other costs during the COVID-19 pandemic.」
Although the company determined that significant doubt regarding the going-concern assumption had been resolved, liquidity exposure remains in the form of a 50.1% current ratio and ¥30 billion in short-term borrowings.