Consolidated Financial Statements - Minoan Lines

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
(g) Contract dated October 12, 1999 with Samsung Heavy Industries Co. Limited (Korean Shipyard) for Hull
1281 to be renamed "Ariadne", the contract price is USD 74.65 million and the Company intends to pay
30% of this out of own funds and 70% through long term bank borrowings. Up to June 30, 2000 the
Company had made advance payments to the shipyard as per the terms of the contract amounting to
USD 11.2 million leaving outstanding a balance of USD 63.45 million the major portion of which
(USD 59.72 million) is due on delivery of the vessel which is scheduled for April 2002.
22. Contingent Liabilities
The Company is contingently liable for additional taxes of GRD 602 million being, contested in the courts.
Based on advice by the Company’s legal counsel, Management is of the opinion that the outcome of the pending
court case will be favourable for the Company, the additional taxes will be substantially reduced or eliminated in
any case. The provision recorded up to June 30, 2000 will be more than sufficient to cover the liability, if any, for
additional taxes that may be eventually determined by the court.
23. Subsequent Events
On August 11, 2000 the Company contracted with Samsung Heavy Industries Co. Limited (Korean Shipyard)
for the building of a high-speed vessels the fourth under construction on behalf of the Company in the Korean
shipyard. The price and terms for the new vessels are similar to the ones already under construction.
On July 5, 2000 Cretan Philoxenia S.A. purchased the 100% of the inactive company "Athena A.V.E.E." using
part of the funds from the share capital increase which took place on June 30, 2000. The total cost of the
acquisition reached GRD 1.1 billion. "Athena A.V.E.E. " owned a building located at Herakleon, Crete that will
be used by the Company for expansion of its offices. On August 23, 2000, the share capital of Cretan Philoxenia
S.A. was increased by GRD 500,000 with the Company fully contributing the amount.
FORTHnet S.A., following its strategic expansion, filed an application for an Initial Public Offering in the Athens
Stock Exchange. FORTHnet will issue 3,701,250 new shares at a price of GRD 4,400. The total number of
shares to be listed on A.S.E. will be 14,805,000 and the total proceeds from the offering will reach GRD
16,285,500. The subscription period will start on September 20, 2000 and will end on September 25, 2000.
Minoan Lines’ stake in FORTHnet, following its IPO, will be diluted to 26.6%.
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