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119
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
28. SIGNIFICANT EVENTS AFTER BALANCE SHEET DATE:
(1) Merger between subsidiaries
Effective February 2, 2006, Bontek Co., Ltd. was merged with Hyundai Autonet Co. Ltd.
(2) New shares issued by Hyundai Card Co. Ltd.
Hyundai Card Co. Ltd. issued 56,199,554 shares of new common stock at ￦6,840 per share on January 5, 2006 based on
the decision of the Board of Directors on October 31, 2005 (Capital stock: ￦280,983 million, Paid in capital: ￦384,484
million).
(3) Credit Facility Agreement by Hyundai Capital Service Inc.
Effective January 13, 2006, Hyundai Capital Service Inc. made Credit Facility Agreement with GE Capital Corporation
(GECC) and Credit Facility limit is US$ 600,000 thousand. According to Credit Facility Agreement, Hyundai Capital Service
Inc., GECC and the Company made Support Agreement, which gives GECC the right to swap the amount withdrawn for
equity unless Hyundai Capital Service Inc. can repay the withdrawal. As such, GECC have put option to sell the converted
equity by the holding ratio of the Company. The Company also have call option to buy equity from GECC with the same
condition unless GECC exercises put option.
(4) Going into Liquidation Procedure
Effective March 6, 2006, Haevichi Leisure Co., Ltd. entered into process of liquidation for the expiration of its business
purpose.
(5) Sales of business division
Effective February 7, 2006, Hyundai Autonet entered into a contract to acquire Cartronics R&D Center of Hyundai Mobis for
￦35,356 million (US$34,902 thousand) for improving efficiency of R&D.
(6) Investigation by the Prosecutor’s Office
Subsequent to December 31, 2005, the Company and its certain subsidiaries are being investigated by the Prosecutors’
Office of the Republic of Korea with respect to certain money transactions of the prior years. Currently, it is impossible to
reasonably measure the effect of this investigation on the Company’s consolidated financial statements; accordingly, no
adjustment is reflected in the accompanying financial statements.
29. CHANGES OF SUBSIDIARY NAME:
Effective January 1, 2006, Aju Metal Co., Ltd. changed its firm name to Metia Corporation. Also, in 2005, Kia Heavy Industries
U.S.A. Corp and Hyundai Machine Tools Europe GmbH also changed their company names to Hyundai-Kia Machine America
Corp. (HKME) and Hyundai-Kia Machine Europe GmbH (HKME), respectively.