Not Enough Cash in ESOP

[Guest padmin]

Client is a small closely held ESOP with all comapny stock held in plan. We are down to jsut a couple of active participants with the terminated ees being paid out in installments over 5 years. The problem is that the cash is dwindling and with just a couple fo ees left even maximum contributions will not satisfy repurchase obligation...any sugestions?

[stephen]

A few options:

1) Retire the shares- i.e. let the company buy them

2) Use dividends to allocate cash in the plan.

3) Take out a new loan and fund the distributions in this manner.