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 Financial took private The Hallwood Group Incorporated (AMEX: HWG), a Delaware corporation, formed in September 1981 operating in the textile products business segment by acquiring shares it did not already own.

Hallwood Resources Poland Inc

In 2011, Hallwood invested in 33% of Silurian Hallwood PLC, an unconventional E&P Polish shale oil company headquartered in Warsaw, which owned four exploration licenses in the highly sought after and prospective Baltic Basin region of North-East Poland, totaling 576,635 acres.

Hallwood Energy L.P

In March 2009, The Hallwood Group Incorporated, a listed Dallas company served as the general partner of Hallwood Energy L.P., an oil and gas partnership principally invested in exploiting about 500,000 acres of Fayetteville shale gas acreage.

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, an affiliate of Hallwood entered into an agreement and plan of merger with Chesapeake Energy Corporation under which Chesapeake acquired HE III for a total cash price of approximately $246.5 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, engaged in diversified real estate activities, including acquisition, ownership and operation, financing and refinancing, development and leasing of six million sq. ft. 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 Petroleum

In 2004, HEC, an affiliate of Hallwood Petroleum, completed a merger with Chesapeake Energy Corporation. The merger agreement provided for a total cash price of $292 million.

Hallwood Energy Corporation

During 2001, Hallwood Energy Corporation concluded a merger agreement pursuant to which Pure Resources, a subsidiary of Unocal, acquired all the outstanding shares of common stock of Hallwood Energy for total consideration of approximately $268 million.

Chuck E Cheese Entertainment Inc.

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

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, Brookwood Companies Incorporated, a wholly owned subsidiary of Hallwood, purchased essentially all the business and assets of Coated Sales, Inc., a Hazlet, New Jersey 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.

Brookwood is now owned by Hallwood Financial.

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.

ShowBiz Pizza Time Inc

Hallwood’s investment in ShowBiz Pizza Time Inc., which operated a system of 450 children’s specialty restaurants in 45 states was spun off as a separate public company in 1988 and later relisted on the NYSE.

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

Alliance Bancorporation

In 1987, Hallwood agreed to rescue and merge Alaska Mutual Bancorporation and United Bancorporation Alaska Inc. into a new bank to be known as Alliance Bancorporation.

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

Banc Texas Group Inc

Following an exhaustive regulatory review of both Hallwood and its proposed restructuring plan in 1987, Hallwood obtained approvals from the Federal Deposit Insurance Corporation, the Comptroller of the Currency and the Federal Reserve Board for its $200 million capital restructuring plan for Banc Texas Group, Inc, a New York Stock Exchange listed, multi-bank holding company.

GCA Corporation

In 1986, Hallwood led a restructuring of this New York Stock Exchange listed manufacturer of capital equipment for the semiconductor industry. The restructuring plan provided GCA with new equity capital, of which approximately $47.7 million was raised by a right offering to GCA shareholders and the balance by private placements in Japan and France.  The company was later sold to Allied Signal.

Brock Hotel Corporation

In 1986, Hallwood continued to expand its corporate rescue financing activities by successfully completing a major restructuring of Brock Hotel Corporation, of Dallas. Listed on the New York Stock Exchange, Brock had traditionally owned and/or managed hotels throughout the U.S. and was one of the largest licensees of Holiday Inns, Inc.

Saxon Oil Company

In 1984, Saxon debt was retired by providing new equity and preferred stock. As a result of the restructuring, Saxon moved from negative net worth to a positive $40 million.

Over the years, this company developed through a series of mergers and acquisitions into Hallwood Energy Corporation, until it was sold in May 2001.

Stanwick International Corporation S.A.

In 1984, Hallwood acquired the remaining assets and liabilities of the bankrupt Chase Manhattan Mortgage and Realty Trust for $34 million in cash and funded the purchase by issuing common shares to institutional investors in the UK, Switzerland, Holland and Japan, plus $15 million of ten-year Eurobonds placed with Japanese insurance companies. Hallwood was a standby purchaser of both the equity issue and the Euro financing.

Institutional Investors Trust

In 1983, Hallwood acquired this New York Stock Exchange listed real estate investment trust located in New York City through a rights offering, of new common shares plus cash, and transfer of a wholly owned subsidiary to a creditor bank, in settlement of debt and redemption of subordinated notes. Following the rescue, the company was sold to a Canadian listed real estate entity.

UMET Trust

In 1981, Hallwood retired bank debt of this New York Stock Exchange listed California based real estate investment trust by issuing rights for new convertible preferred shares. Shareholders exercised rights to purchase 50,000 shares, and standby institutional investors purchased the remainder of the issue. This company was later merged into Hallwood Group.

First Pennsylvania Mortgage Trust

In 1979, Hallwood restructured this New York Stock Exchange listed real estate investment trust owning a portfolio of real estate and mortgage investments located throughout the United States.
Hallwood acquired control of First Pennsylvania in the transaction and later merged its private interests and another public company listed on the London Stock Exchange into what came to be known as The Hallwood Group on the NYSE.

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