Kia 2001 Annual Report Download - page 31
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Please find page 31 of the 2001 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Financial Statements & Notes
58 59
In accordance with the court-approved reorganization plan, the above reorganization claims, with the
exception of current maturities, will be repaid over seven years beginning 2002 to 2008, after a 3-year
grace period. The applicable interest rate is variable depending on the 3-year non-guaranteed bond cir-
culating earnings rate.
In addition to the pledged assets explained in Note 6 to the financial statements, cash equivalents and
bank deposits of 99 million ($75 thousand), 109 blank checks, 203 blank promissory notes, and 2
promissory notes totalling 1,820 million ($1,372 thousand) are pledged as collateral for the short-term
borrowings and the long-term local currency and foreign currency loans.
The maturities of long-term debt outstanding as of December 31, 2001 are as follows:
(1) At December 31, 2001, the outstanding balance of accounts receivable from export sales discounted
with recourse amounts to 1,129,803 million ($851,974 thousand).
(2) The Company is contingently liable for payment guarantees of indebtedness, primarily of the follow-
ing companies as of December 31, 2001.
(3) The Company uses a customer financing system related to a long-term installment sales system and
has provided guarantees of 202,641 million ($152,810 thousand) to the banks concerned as of
December 31, 2001. These guarantees are all covered by insurance contracts, which specifies a
customer and the Company as contractor and beneficiary, respectively.
(4) The Company is a defendant to 2 lawsuits pertaining to the Company's denial of creditors' claim in
the in-court reorganization proceedings amounting to 112,109 million ($84,540 thousand) as of
December 31, 2001. In addition, the Company is a defendant in 7 lawsuits for compensation of loss-
es or damages amounting to 7,625 million ($5,750 thousand) as of December 31, 2001. The out-
come of those lawsuits is not currently determinable.
Capital stock as of December 31, 2001 and 2000 consist of the following:
In accordance with the court-approved reorganization plan, on February 2, 1999 all issued shares of
common stock, except those owned by specific related persons, were reduced by a ratio of 10 to 1, and
the shares owned by the specific related persons were extinguished.
Also, under the court-approved reorganization plan, on March 30, 1999, 5,482,181 million ($
4,134,063 thousand) of the Company's debt was forgiven, including its guaranteed obligations, and an
additional 1,799,999 million ($1,357,363 thousand) of its liabilities was converted into capital stock for
which 119,999,932 new shares were issued at 15,000 per share.
On December 7, 2000, 714 million ($538 thousand) of a creditor's claims in dispute was additionally
determined by the court as the Company's reorganization claim and converted into capital stock for
which 142,953 new shares were issued.
In accordance with the take-over contract with the Hyundai Motor Company, representing the Hyundai
Motor Consortium, effective December 1, 1998, the Company issued new common stock of 172,431,118
shares amounting to 938,656 million ($707,832 thousand) and the Hyundai Motor Consortium
acquired 153,000,000 shares amounting to 841,500 million ($634,568 thousand) for 51 percent as at
March 30, 1999.
On November 4, 2000, the shareholders of the Company approved the retirement by December 31,
2001 of 80 million shares, or 17.8 percent of total common stock issued at the date of shareholders'
meeting. In accordance with the consensus reached during the said shareholders' meeting and the pro-
visions of the Korean Commercial Code, the Company concluded the stock retirement covering 80 mil-
lion treasury shares, which had been reacquired for retirement purposes since the date of the sharehold-
ers' meeting. As a result of the stock retirement, the number of the Company's total common shares
issued has been reduced to 369,597,455 shares as of December 31, 2001.
Financial institutions, with loans to the Company which had been forgiven or converted into the
Company's common stock, and Hyundai Motor Consortium were granted rights to subscribe to the reg-
istered non-voting preferred stock with a par value of 5,000. On December 28, 1998, the financial insti-
tutions acquired rights equal to 10 percent of the forgiven debt and liabilities converted into new capital
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
Year Debentures Local Foreign Total Total
Currency Loans Currency Loans
-136,185 31,938 168,123 126,780
382,610 136,825 31,938 551,373 415,785
- 136,572 31,938 168,510 127,072
251,959 415,152 95,811 762,922 575,313
634,569 824,734 191,625 1,650,928 1,244,950
2003
2004
2005
Thereafter
Korean won (in millions)
U.S. dollars (Note 2) (in thousands)
11. COMMITMENTS AND CONTINGENCIES:
54
2,140 1,614
2,145 1,618
Kisan Corporation
A.P. Co., Ltd.
Korean won (In millions) U.S. dollars (Note 2) (in thousands)
820,000,000 shares 369,597,455 shares 5,000 1,847,987 $1,393,550
900,000,000 shares 449,597,455 shares 5,000 2,247,987 $1,695,187
2001
2000
Authorized Issued Par value
12. CAPITAL STOCK:
Korean won (in millions) U.S. dollars (Note 2) (in thousands)