IV. Re-capitalization

Improve Financial Fundamentals
Cooperation from GM, Shareholders and Financial Institutions
GM 1. Retirement of shares
- Cancellation without consideration (619 million shares)
2. Total injection of approx. Y60.0 billion for:
- JV with Isuzu, capital increase in Isuzu PT units
- Intellectual property
- Subscription to new shares of Isuzu (for 10.0 billion: 12% equity)
3. Consolidation of PT companies and assumption of approx. Y40.0 billion debt
(est. a/o Dec '02)
 
General shareholders
(excluding GM)
1. Reduction of capital stock: Y89.8 billion, including cancellation of GM's shareholding without consideration.
* Note: Number of issued shares to general shareholders remain unchanged.
 
Financial
institutions
1. Debt-for-equity conversion: Y100.0 billion of debt with major banks
(to be converted to new issues of preferred stock)
To restore Isuzu net worth
2. New money
- Bond redemption funds: financing request, to cover redemptions during the period
- Headcount reduction funds: financing request to 5 major banks
3. Financial support from other banks
- Roll-over of existing credits: Based on request to major banks to step up cooperation, other financial institutions are also requested to accept roll-over

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