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The executors and the foundation decided to implement the
restructuring plan. HG was organized on January 13, 1999. The
foundation became its only member.
The restructuring was completed on January 14, 1999. As a
result of the restructuring: (a) The Gilman businesses, except
for 77,000 acres of timberland already under contract of sale,2
were transferred from GIC to HG; (b) GIC, the sole member of HG,
merged into the foundation, making the foundation the sole member
and sole owner of HG; (c) Bergreen and Moody were the sole
managers of HG, which gave them exclusive control over HG’s
assets and their subsequent sale; and (d) HG and its subsidiaries
had legal title to all the assets previously held by GIC and its
subsidiaries other than 77,000 acres of timberland held by the
foundation.3
HG obtained a $250 million line of credit from NationsBank
to refinance and consolidate debt and to provide working capital
for the Gilman businesses. After the restructuring, HG and its
subsidiaries began to sell the GIC assets and businesses except
for Gilman Building Products.
2 Before the restructuring, GIC transferred title to 77,000
acres of timberland to the foundation.
3 The foundation sold the 77,000 acres of timberland in Jan.
1999.
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Last modified: May 25, 2011