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60 mitsubishi motors corporation annual report 2008
The following groups of assets of a consolidated subsidiary, Suiryo Plastics Co., Ltd., were pledged as collateral at March 31, 2008 and
2007, respectively.
In millions of yen
In thousands of
U.S. dollars
2008 2007 2008
Buildings and structures ¥ 994 ¥1,007 $ 9,926
Machinery and equipment 1,210 1,349 12,086
Land 194 194 1,941
¥2,399 ¥2,551 $23,954
The obligations secured by such collateral at March 31, 2008 and 2007 consisted of the following:
In millions of yen
In thousands of
U.S. dollars
2008 2007 2008
Short-term borrowings ¥ 75,341 ¥112,962 $ 751,983
Current portion of long-term debt 48,466 65,034 483,748
Long-term debt 27,102 76,659 270,509
¥150,910 ¥254,657 $1,506,242
8. Net Assets
The Corporate Law provides that an amount equal to 10% of the amount to be disbursed as a distribution of earnings should be appropri-
ated to the legal reserve until the sum of the legal reserve and capital surplus equals at least 25% of the common stock account. MMC and
its domestic subsidiaries have provided these amounts in accordance with the Corporate Law.
MMC is authorized to issue 3,312,000 shares of convertible preferred stock that are classified as Series A, B and G (3 to 4 times in
each series), and has 437,593 shares outstanding at March 31, 2008.
The holders of each series of convertible preferred stock do not have voting rights, but the holders of Series A and G (except for
Series B) are entitled to preferred stock dividends of ¥50,000 per share each year after April 2009.
MMC also distributes residual claims to the holders of each series of convertible preferred stock by a single payment of one million
yen per share of preferred stock in order of payment.
9. Contingent Liabilities
Loan guarantees given in the ordinary course of business amounted to ¥4,699 million ($46,901 thousand) and ¥4,192 million at March 31,
2008 and 2007, respectively. Agreements similar to guarantees given in the ordinary course of business amounted to ¥2,028 million
($20,250 thousand) and ¥2,626 million at March 31, 2008 and 2007, respectively.