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3. The Notes
As part of the restructuring, the estate received $143
million in notes (subordinated to the $250 million line of
credit) from subsidiaries of Gilman Building Products and from
Gilman Paper Co.’s railroad. All of the notes were due to be
paid in full on January 31, 2004.4
Interest but not principal was payable annually beginning
January 31, 2000. However, on January 28, 2000, the executors
and obligors of the $143 million in notes agreed that interest on
the notes could be deferred at the option of the obligors. The
total amount of interest to be paid by 2004 was about $46.5
million. The executors expected to use the interest and
principal payments on the notes to pay estate expenses including
Federal and New York State estate taxes.
After the restructuring, the estate held $183 million in
assets, including the notes in the amount of $143 million, and
apartments and cash.
4. Election To Defer Tax Payments
On April 1, 1999, the executors elected under section 6166
to pay Federal estate tax in 10 annual installments, beginning on
4 As part of the sale of Gilman Paper Co. in Dec. 1999, a
debt of $5 million (part of the $143 million in notes) was
cancelled.
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Last modified: May 25, 2011