Kia 2007 Annual Report Download - page 98

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098_
Kia Motors Annual Report 2007
Detail of range forwards as of December 31, 2006 are as follows:
Under the range forwards contracts, the Company recognized a valuation gain to ￦111 million in earnings, for the year ended December 31, 2006.
(23) Common Stock
Capital Stock as of December 31, 2007 is summarized as follows:
Under the court-approved reorganization plan on March 30, 1999, ￦5,482,181 million of the Company’s debt was forgiven, including its guaranteed obligations,
and an additional ￦1,799,999 million of its liabilities was converted into common stock, for which 119,999,932 new shares were issued at ￦15,000 per share.
In addition, on December 7, 2000, a disputed creditor’s claim in the amount of ￦714 million was determined by the court to be part of the Company’s
reorganization plan and it was converted into common stock, for which 142,953 new shares were issued.
In accordance with the takeover contract undertaken with 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. In addition, the Hyundai Motor Consortium acquired 153,000,000
shares amounting to ￦841,500 million for a total ownership of 51 percent as of March 30, 1999.
Financial institutions, whose loans to the Company had been forgiven or converted into the Company’s common stock, and Hyundai Motor Consortium were
granted rights to subscribe to the registered non-voting preferred stock with a par value of ￦5,000 per share. On December 28, 1998, the financial institutions
acquired rights equal to 10 percent of the forgiven debt and liabilities which were converted into new common stock. Also, on December 28, 1998, the Hyundai
Motor Consortium acquired rights to the extent that the Consortium shall own up to 51 percent of all the additional preferred shares to be issued. These pre-
emptive rights can be exercised at once or several times in the fifth or tenth year from December 28, 1999, the date the court approved the reorganization plan. and
the Company shall pay a dividend equal to at least two percent for the preferred shares to be issued for the exercise of the rights. In 2003, the fifth year from
December 28, 1999, no pre-emptive rights were exercised. In addition, financial institutions that had invested in Asia Motors and Hyundai Motor Consortium were
granted pre-emptive rights under the same conditions as described above.
The Company retired 10 million shares of treasury stock on July 2, 2003, which had been acquired for such retirement purposes based on the decision of the Board
of Directors on May 9, 2003. Also, the Company retired 12.5 million shares of treasury stock on May 28, 2004, which had been acquired for ￦136,701 million for
such retirement purposes based on the decision of the Board of Directors on March 19, 2004. There are 347,230,455 shares of common stock remaining. Due to
these stock retirements, the aggregate par value of issued shares (￦1,736,152 million) differs from the common stock amount.
As of December 31, 2007, 480,764 shares of treasury stock (0.14% of total stock) lost voting rights under paragraph 2 of Article 369 of the Korean Commercial Code.
December 31, 2007 and 2006
Notes to Non-Consolidated Financial Statements
20,000,000EUR 2006. 12.1 2007. 2. 7
~ 2007. 3.7
111
Maturity date
Contract dateContract amount
Derivative
instrument
Fair value
(Won in millions)
Range forwards
347,230,455 346,749,691 5,000 1,848,652
Par ValueOutstandingIssuedAuthorized Won (millions)
820,000,000 ￦￦