Financial Covenants in Syndicated Loans and Liquidity Risk
First written in FY2016. 4 of 11 entries say "Mitigated", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2025: 24 of 80 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「We regularly monitor our financial condition and are strengthening the sharing of information with group companies, financial institutions, audit firms and others, including through monthly reviews of income, expenses and cash flows.」
It continued to identify the risk of financial covenant breaches as a priority risk and cited monthly cash management and information sharing among relevant parties as countermeasures. - FY2024-Q2Update to the amount subject to financial covenant breachesAnnual report
「Some of our long-term borrowings subject to financial covenants were in partial breach of those covenants at the end of the second quarter of the current consolidated fiscal year. However, we obtained the agreement of the lending financial institutions not to exercise their rights relating to the loss of the benefit of time.」
The breach of financial covenants continued, and the relevant borrowing balances comprised short-term borrowings of ¥750 million and long-term borrowings of ¥4.125 billion, for a total of ¥4.875 billion. - FY2023Update to the amount subject to financial covenant breachesAnnual report
「The above short-term borrowings of ¥2,378 million and long-term borrowings of ¥11,015 million were in partial breach of financial covenants at the end of the current consolidated fiscal year. However, we obtained the agreement of the lending financial institutions not to exercise their rights relating to the loss of the benefit of time.」
The breach of financial covenants continued, and the total balance of the relevant borrowings became ¥13.393 billion. Agreement had been obtained from the financial institutions not to exercise their rights relating to the loss of the benefit of time. - FY2023-Q2Update to the amount subject to financial covenant breachesAnnual report
「Some of our long-term borrowings subject to financial covenants were in breach of those covenants at the end of the second quarter of the current consolidated fiscal year. However, we obtained the agreement of the lending financial institutions not to exercise their rights relating to the loss of the benefit of time. The relevant borrowing balances comprise short-term borrowings of ¥750 million and long-term borrowings of ¥4,875 million, for a total of ¥5,625 million.」
It indicated that the breach of financial covenants was continuing and updated the total balance of the relevant borrowings to ¥5.625 billion. - FY2022MaterialisedAnnual report
「The above short-term borrowings of ¥2,378 million and long-term borrowings of ¥13,393 million were in breach of financial covenants at the end of the current consolidated fiscal year. However, we obtained the agreement of the lending financial institutions not to exercise their rights relating to the loss of the benefit of time.」
A breach of financial covenants actually occurred. It also stated that agreement had been obtained from the financial institutions not to exercise their rights relating to the loss of the benefit of time. - FY2021MitigatedAnnual report
「On the financial front, in addition to the existing ¥9 billion commitment-line agreement, we raised ¥5 billion through long-term borrowings and established a ¥20 billion short-term borrowing facility by June last year. Furthermore, in March this year, we raised a total of ¥56.7 billion through a public offering and other measures, thereby taking steps to avoid the risk of funding shortages caused by a decline in revenue.」
In addition to existing liquidity facilities and borrowings, it raised a total of ¥56.7 billion through a public offering and other measures, expanding its response to the risk of funding shortages amid lower revenue. - FY2021-Q1MitigatedAnnual report
「On the financial front, in addition to raising approximately ¥25 billion through long-term borrowings to pay for international-flight construction costs, we raised ¥5 billion through long-term borrowings to secure liquidity on hand. Furthermore, in addition to the existing ¥9 billion commitment-line agreement, we newly established a ¥20 billion short-term borrowing facility and are working to secure the funds necessary for business continuity.」
In addition to the existing ¥9 billion commitment line, it drew down or established long-term borrowings of approximately ¥25 billion and ¥5 billion and a ¥20 billion short-term borrowing facility, expanding its measures to secure liquidity. - FY2020MitigatedAnnual report
「In addition, on the financial front, we established a ¥20 billion short-term borrowing facility with multiple banks in April this year, in addition to the existing ¥9 billion commitment-line agreement, as a measure to avoid the risk of funding shortages caused by a decline in revenue.」
In addition to the existing ¥9 billion commitment line, it established a ¥20 billion short-term borrowing facility, expanding its response to liquidity risk amid lower revenue caused by the infectious disease. - FY2019MitigatedAnnual report
「In addition, we have established committed-term-loan and commitment-line agreements with a total facility amount of ¥9 billion to address unforeseen circumstances, and believe that there will be no difficulty in securing funds for the time being.」
It established total commitment facilities of ¥9 billion to address liquidity risk relating to syndicated loans and other factors. - FY2017RestatedAnnual report
「The agreement contains financial covenants and other provisions. If a covenant is breached, for example because tax reforms or changes in the business environment result in our credit rating being downgraded beyond a certain level, we could lose the benefit of time with respect to repayment, potentially having a material impact on our cash flow, operating results and financial condition.」
It continued to state that a breach of financial covenants on syndicated loans or a decline in credit ratings could affect cash management and other areas. - FY2016First statedAnnual report
「The agreement contains financial covenants and other provisions. If a covenant is breached, for example because tax reforms or changes in the business environment result in our credit rating being downgraded beyond a certain level, we could lose the benefit of time with respect to repayment, potentially having a material impact on our cash flow, operating results and financial condition.」
It stated that a breach of financial covenants on syndicated loans or a decline in credit ratings could affect cash management and other areas.