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October 3, 2003.5 The executors also elected under New York Tax
Law section 997 (McKinney 1999) to pay New York estate tax in 10
annual installments.
E. HG and Foundation Finances
1. HG’s Cash Requirements in 2000-02
Beginning in 2000, there was a reduction in the net positive
cashflow of Gilman Building Products. Gilman Building Products’
net positive cashflow decreased from an average of more than $42
million per year in 1994-99 to $3.5 million in 2000, $19 million
in 2001, and $9.2 million in 2002.
By the end of 2001, HG needed $30 to $40 million in cash and
cash equivalents as working capital to pay operating expenses of
its businesses. At that time, HG had cash and cash equivalents
of $36.3 million. On October 18, 2002, HG had cash and cash
equivalents of $16.7 million.
HG received more than $287 million from the sale of Gilman
assets and businesses from 1999 to 2002. HG used most of those
receipts to repay the $250 million line of credit from
NationsBank. HG used the remainder as working capital and to pay
other expenses.
5 The estate paid four installments of interest only,
beginning Oct. 3, 1999.
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