14th Feb 2008 10:05
Samsung Electronics Co. Ld14 February 2008 Courts Ruling on Samsung Motors Case Summary of the Lawsuit 1. This lawsuit is related to the agreement regarding court receivership ofSamsung Motors which Chairman Lee and 28 Samsung affiliates including SamsungElectronics have made with creditors of Samsung Motors in September 1999.(Related public disclosure: Lawsuit against Samsung Electronics and itsAffiliates Regarding Samsung Motors, December 22, 2005) 2. The agreement between defendants and plaintiffs is still valid, butdefendants have no obligation to pay KRW 2.45 trillion in cash as plaintiffsclaimed. Defendants only have the obligation to sell 2.33 million shares of the3.5 million shares which Chairman Lee already donated to plaintiffs, excluding1.17 million shares which Seoul Guarantee Insurance sold already, to payplaintiffs proceeds up to KRW 1.63 trillion. 3. If proceeds from sale of 4 million shares of Samsung Life Insurance are lessthan KRW 2.45 trillion, defendants have the obligation to pay the remainderthrough capital contributions or purchase of subordinate bonds. Additional Information on Court Decision 1. Seoul District Court dismissed the claim of 14 creditors of Samsung Motorsincluding Seoul Guarantee Insurance against Samsung Electronics and itsaffiliates to pay KRW 2.45 trillion and delinquency interest in cash. 2. (a) Defendants shall sell 2.33 million shares of Samsung Life Insurancewhich Chairman Lee Kun-Hee donated to plaintiffs, and pay the plaintiffs up to1.63 trillion of proceeds from stock sale. If agreed by plaintiffs, the paymentcan be made with securities. (b) If proceeds from sale of 3.5 million shares which Chairman Lee donatedto plaintiffs are less than KRW 2.45 trillion, Chairman Lee shall donateup to 0.5 million shares of Samsung Life Insurance to provide the remainder. (c) Defendants shall sell shares of Samsung Life Insurance to beadditionally donated by Chairman Lee Kun-Hee to plaintiffs, andpay the proceeds to plaintiffs. If agreed by plaintiffs, the payment canbe made with securities. 3. If proceeds from sale of 3.5 million shares of Samsung Life Insurance whichChairman Lee already donated to plaintiffs plus the additionally donated 0.5million shares are less than KRW 2.45 trillion, defendants are obliged toprovide the remainder through capital contributions or purchase of subordinatebonds upon agreement with plaintiffs. 4. Defendants shall pay plaintiffs interest for KRW 1.63 trillion that has beenaccumulating since January 1, 2001, at an annual rate of 6 percent. 5. article 2 and article 4 can be provisionally executed. 6. Plaintiffs shall pay 60% of the costs of a lawsuit, and defendants shall paythe remainder. Others - Samsung Electronics will to review the possible response measures includingan appeal after consultation with its affiliates. - Date of written judgment receiving: February 14, 2008 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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