LG 2001 Annual Report Download - page 71

LG Electronics Inc. The
43
rd Annual Report
Notes to Financial Statements
for the years ended December 31, 2001 and 2000
previously redeemed. Each bond can be exchanged for 266.4 shares of Hynix common stock with a par value of 5,000. The exchange
price was initially determined to be 33,345 per share based on a fixed exchange rate for U.S. dollars of US$1.00 = 888.30. The
terms and conditions of the exchangeable bonds are as follows :
Basic exchange price for each share of Hynix common stock : US$ 37.54 ( 33,345 / 888.30)
Payment of interest : At the end of each year
Final redemption :Unless previously redeemed, purchased or exchanged, the bonds will be redeemed on December 31, 2007 at
their principal amount, plus accrued interest.
Redemption at the option of the Company : The Company may redeem any or all of the bonds at their principal amount, plus
accrued interest. However, no such redemption can be made before July 9, 2002, unless the closing price (converted into U.S.
dollars at the prevailing exchange rate) for each of the 30 consecutive trading days, the last of which occurs not more than 30 days
prior to the date upon which the notice of redemption is published, has been at least 135% of the exchange price in effect on each
such trading day converted into U.S. Dollars at a fixed exchange rate of US$1.00 : 888.30.
Redemption at the option of the bondholders :The bondholders may require the Company to redeem any or all (in multiples of US$
10,000) of the bonds held by such holders on July 8, 2002 at 133.67% of the principal amount of such bonds, plus accrued
interest.
Exchange by bondholder
Each bond is exchangeable for a pro rata share of the exchange property until November 30, 2007. As of December 31, 2001,
the exchange property comprises 1,997,976 common shares of Hynix, calculated by dividing the aggregate principal amount
(converted into Won at a fixed exchange rate of US$1.00 : 888.30) by the exchange price, but is subject to change as a result
of any adjustment to the exchange price or an offer made for the common shares.
As of December 31, 2001, the bonds are translated using exchange rate as of balance sheet date and
reclassified to current maturities of long-term debt as the Company estimates that bondholders will request to
redeem the bonds early in 2002.
As of December 31, 2001 and 2000, the Company has outstanding long-term other accounts payable
amounting to 17,013 million and 2,287 million, respectively. Long-term other accounts payable as of
December 31, 2000 was related to a land purchase for the Bundang research center and was repaid out in
2001. Long-term other accounts payable as of December 31, 2001 includes 16,897 million of payable in
relation to the option premium of treasury stock sales.
See Notes 3 and 8 for the related collateral arrangements for the Company s long-term debt.
The maturities of long-term debt outstanding as of December 31, 2001 are as follows:
Millions of Won
For the year ending Debentures and Long-term Long-term
December 31, convertible bonds debt other accounts payable Total
2003 742,610 35,697 17,013 795,320
2004 850,000 23,172 - 873,172
2005 - 17,234 - 17,234
2006 882,610 8,827 - 891,437
2007 and thereafter - 3,307 - 3,307
2 ,475,220 88,237 17,013 2,580,470