Our Past Trasactions

Past investments by Hallwood companies have included: control positions in First Pennsylvania Mortgage Trust, The UMET Trust, (the Union Bank of California Real Estate Investment Trust), Chase Manhattan Realty Trust and Institutional Investors Trust in New York.

Our highest profile investment, sold in 1996, was probably a control position in Chuck-E- Cheese, a national children’s entertainment restaurant chain listed on the NYSE.

The following are brief descriptions of major U.S. investment banking transactions in which Hallwood has played a leadership role:

The Hallwood Group Inc (‘HWG”) and Brookwood

In May 2014, Hallwood took private The Hallwood Group Incorporated (AMEX:HWG), a Delaware corporation, formed in September 1981, operating in the textile products business segment by acquiring those shares of that it did not already own at the price of $13 per share.

A Hallwood subsidiary, Brookwood Companies Inc, is an integrated textile company and a major supplier of high tech fabrics to the US military with sales of over $125 million per annum.

The Local Radio Company PLC

In 2006, Hallwood Financial acquired a 28.5% controlling position in The Local Radio Company PLC, a public limited company incorporated in England, which owns and operates 19 local radio licenses across the UK.

The share stake was sold to UKRD PLC, in February 2015.

Hallwood Energy III, L.P

In 2005 a Hallwood affiliate Hallwood Energy III, L.P. was sold to Chesapeake Energy Corporation for a total cash price of approximately $246.5 million.

Hallwood Petroleum

In 2004, a Hallwood affiliate, Hallwood Petroleum, was sold to Chesapeake Energy Corporation for a total cash price of $292 million.

Hallwood Realty Partners, L.P

Until 2004 Hallwood controlled Hallwood Realty Partners, L.P., a large master limited partnership listed on the American Stock Exchange, which owned six million square feet of commercial office real estate.

In 2004, Hallwood Realty Partners, L.P. was sold to HRPT Properties Trust for a total cash price of approximately $250 million.

Hallwood Energy Corporation

During 2001 a publicly traded Hallwood affiliate, Hallwood Energy Corporation, was sold to Pure Resources, a subsidiary of Unocal for total consideration of approximately $268 million. The transaction price represented a 38% premium over the $9.03125 closing price.

Chuck E Cheese Entertainment Inc.

In 1997, Hallwood’s investment in CEC Entertainment, Inc., formerly ShowBiz Pizza Time Inc., was sold in a $60 million secondary public offering underwritten by CS First Boston. CEC Entertainment operates a system of about 450 children’s Chuck-E-Cheese specialty restaurants in 45 states.

Hallwood retained an approximate 25% interest in ShowBiz with a stock market value of approximately $100 million.

Hallwood Realty, LLC

In 1990, a Hallwood affiliate, Hallwood Realty, LLC, the general partner of Hallwood Realty Partners, L.P., which owned six million square feet of commercial office real estate, successfully completed a rescue when it consolidated eight limited partnerships, originally sponsored by Equitec Financial Group, Inc., protected the investors from Equitec’s financial troubles and provided liquidity for the partnership units on a major exchange.

Coated Sales, Inc.

In 1989, a Hallwood subsidiary, Brookwood Companies Incorporated purchased all the business and assets of Coated Sales, Inc, a textile company, previously in Chapter 11 bankruptcy. The price was $26 million, most of which was distributed to Coated Sales’ creditors in settlement of debt.

Oakhurst Capital, Inc.

In 1989, Hallwood completed the restructuring of Heck’s Inc., a 55-store West Virginia based discount retailer, with the company’s emergence from Chapter 11 bankruptcy.

Alliance Bancorporation

In 1987, Hallwood rescued and merged Alaska Mutual Bancorporation and United Bancorporation Alaska Inc. into a new bank known as Alliance Bancorporation.

The FDIC contributed $295 million of open bank assistance to the newly combined bank. Hallwood raised $65 million of new equity by a stock rights offering underwritten by Hallwood.

In May 1989, Hallwood exercised a put option, selling its Alliance stock to the FDIC.

Banc Texas Group Inc

In 1987 Hallwood worked with the Federal Deposit Insurance Corporation, the Comptroller of the Currency and the Federal Reserve Board in a $200 million capital restructuring plan for Banc Texas Group, Inc. The restructuring was completed in July 1987.Hallwood raised $50 million through a stock rights offering underwritten by Hallwood and $150 million was contributed by the FDIC.

GCA Corporation

In 1986, Hallwood restructured GCA, a New York Stock Exchange listed manufacturer of capital equipment for the semiconductor industry. In the transaction, GCA retired $109 million of debt in exchange for approximately $43 million in cash and warrants to purchase common stock.

The restructuring plan provided GCA with $71.9 million in new equity capital, of which approximately $47.7 million was raised by a rights offering to GCA shareholders underwritten by Hallwood and the balance by private placements in Japan and France. The company was later sold to Allied Signal.

Brock Hotel Corporation

In 1986, Hallwood successfully restructured Brock Hotel Corporation of Dallas. Listed on the New York Stock Exchange, Brock was one of the largest licensees of Holiday Inns, Inc.

The restructuring plan retired $140 million of Brock’s debt and lease obligations for $36 million in cash, plus shares of common stock. A total of approximately $40 million, covering cash payments to creditors, plus expenses for implementing the program, was raised through a stock rights offering to Brock shareholders underwritten by Hallwood.

Stanwick International Corporation S.A.

In 1984, a Hallwood affiliate, Stanwick acquired the remaining assets and liabilities of the bankrupt Chase Manhattan Mortgage and Realty Trust. Stanwick purchased the assets of for $34 million in cash and funded the purchase by issuing shares to institutional investors in the UK, Switzerland, Holland, and Japan. Hallwood underwrote the equity issue.

Saxon Oil Company

In 1984, Hallwood successfully restructured Saxon and retired $180 million of Saxon debt by providing new equity and preferred stock with a value of $52 million in a stock rights offering underwritten by Hallwood. Saxon moved from negative net worth to a positive $40 million.

Institutional Investors Trust

In 1983, a Hallwood affiliate successfully restructured Institutional Investors Trust, a New York Stock Exchange listed real estate investment trust, by underwriting a shareholder rights offering to raise $25 million, which retired $46.4million in debt. Following the rescue the company was sold to a Canadian listed real estate entity.

Stanwick International Corporation S.A.

In 1984, a Hallwood affiliate, Stanwick acquired the remaining assets and liabilities of the bankrupt Chase Manhattan Mortgage and Realty Trust. Stanwick purchased the assets of for $34 million in cash and funded the purchase by issuing shares to institutional investors in the UK, Switzerland, Holland, and Japan. Hallwood underwrote the equity issue.

UMET Trust

In 1981, a Hallwood affiliate successfully restructured UMET, a New York Stock Exchange listed California based real estate investment trust by underwriting a shareholder rights offering to raise $18.6 million which retired $29.9 million of UMET debt. This company was later merged into Hallwood Group.

First Pennsylvania Mortgage Trust

In 1979, a Hallwood affiliate successfully restructured First Pennsylvania, a New York Stock Exchange listed real estate investment trust, by underwriting a shareholder rights offering to raise $20 million which retired $47 million of First Pennsylvania debt. This company was later merged into Hallwood Group.

Major Participants in Past Hallwood Transactions:

Invesco M.I.M.
The Prudential Assurance Co. PLC
N. M. Rothschild & Sons Ltd.
Scottish Amicable Life Assurance Co. Ltd.
Scottish American Investment Trust PLC
S. G. Warburg & Co. Ltd.
Fidelity Management & Research
Hambros International
IDS Financial Services
Paribas