Our Past Trasactions
The Hallwood petroleum management group is known in the industry as an innovator and pioneer in the exploration and production of unconventional shale oil and gas contained in onshore fields. Since 1984 we have successfully drilled hundreds of conventional and non-conventional wells and have developed horizontal well drilling technique and creative hydraulic fracturing technology.
In 2001, the management team sold our unconventional resource properties which including coal bed methane in the San Juan Basin of New Mexico and Colorado to a subsidiary of Unocal for $268 million.
Our operations in the Barnett Shale in the Fort Worth Basin of Texas were sold to Chesapeake Energy Corporation in 2005 for $535 million.
In summary, Hallwood has had a long history of acquiring, owning, operating and selling oil and gas projects.
Past investments by Hallwood companies have also 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.
The following are brief descriptions of major U.S. investment banking transactions in which Hallwood has played a leadership role:
Our highest profile investment was probably a control position in Chuck-E-Cheese, a national children’s entertainment restaurant chain listed on the NYSE.
Hallwood Modular
In March 2023, Hallwood sold to an NYSE-listed buyer its 89% interest in Hallwood Modular Buildings, which leases its fleet of patent-protected Blast Resistant Modules to Chemical Plants and Refineries throughout North America.
The Hallwood Group Inc (‘HWG”) and Brookwood
In 2015, The Hallwood Group Incorporated, then listed on the NYSE, was taken private at a price of $13 per share by Hallwood Financial Limited, a company controlled by Mr. Gumbiner.
In May 2014, HWG took private its listed subsidiary, Brookwood Companies Inc, a major supplier of high tech fabrics to the US military with sales of over $130 million per annum.
Silurian Hallwood PLC
In 2010, Hallwood Resources Poland Inc. acquired 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.
After drilling a number of test wells, oil was discovered and produced in limited quantity, but not on economic terms and we elected to abandon the project.
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 Real Estate
In 2005, Hallwood developed a multifamily garden apartment project in Houston Texas. Hallwood retained an experienced staff of real estate professionals and over the next ten years built and resold a rental portfolio of over 1200 garden apartments in Texas and Arkansas.
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 sq. ft. of commercial office real estate.
In 2004 Hallwood Realty Partners, L.P. was sold to HRPT Properties Trust for $250 million.
Hallwood Petroleum
In 2004, HEC an affiliate of Hallwood Petroleum completed a merger with Chesapeake Energy Corporation under which HEC was acquired by Chesapeake. The merger agreement provided for a total cash price of $292 million.
Hallwood Energy Corporation
During 2001, Hallwood Energy Corporation which owned and operated producing oil properties in the Permian Basin was sold to Unocal for $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 CS First Boston. CEC Entertainment operates a system of about 450 children’s Chuck-E-Cheese specialty restaurants in 45 states.
ShowBiz Pizza Time Inc
Hallwood 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.
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 textile company, previously in Chapter 11 bankruptcy.
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.
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.
The FDIC agreed to contribute $295 million of open bank assistance to the newly combined bank. Hallwood agreed to raise $65 million of new equity by a stock rights offering. Hallwood subscribed $57.75 million of the $65 million rights offering which it underwrote and received approximately 82.2% of the bank’s common stock.
In May 1989, Hallwood exercised a put option, selling its Alliance stock to the FDIC.
Banc Texas Group Inc
In 1987 Hallwood obtained approvals from the Federal Deposit Insurance Corporation, the Comptroller of the Currency and the Federal Reserve Board for a $200 million capital restructuring plan for Banc Texas Group, Inc.
The restructuring of Banc Texas included the infusion of $50 million of private sector capital raised by Hallwood through a stock rights offering and $150 million from the FDIC.
GCA Corporation
In 1986, Hallwood led a restructuring for GCA, a New York Stock Exchange listed manufacturer of capital equipment for the semiconductor industry.
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 and the balance by private placements in Japan and France. The company was later sold to Allied Signal.
Brock Hotel Corporation
In 1986, Hallwood completed a restructuring of Brock Hotel Corporation, of Dallas. Listed on the New York Stock Exchange, Brock owned hotels throughout the U.S. and was one of the largest licensees of Holiday Inns, Inc.
Hallwood satisfied $140 million of Brock’s debt and lease obligations by underwriting a stock rights offering to Brock shareholders.
Saxon Oil Company
In 1984, Hallwood satisfied $180 million of Saxon debt by underwriting a $52 million stock rights offering to Saxon shareholders.
Over the years, this company, renamed Hallwood Energy Corporation, was operated by Hallwood until it was sold in May 2001 to Unocal for $268 million.
Stanwick International Corporation S.A.
In 1984 a Hallwood affiliate listed on the Luxembourg Stock Exchange acquired the remaining assets and liabilities of the bankrupt Chase Manhattan Mortgage and Realty Trust. Stanwick purchased most of the assets for $34 million in cash and funded the purchase with an issue of shares and Eurobonds to institutional investors in the UK, Switzerland, Holland and Japan.
Hallwood underwrote both the equity issue and the European financing.
Institutional Investors Trust
In 1983, Hallwood restructured Institutional Investors Trust, a New York Stock Exchange listed real estate investment trust located in New York City by underwriting a rights offering of common shares in settlement of $46 million in debt.
Following the rescue, the company was sold to a Canadian listed real estate entity.
UMET Trust
In 1981, Hallwood restructured the UMET Trust, a New York Stock Exchange listed California based real estate investment trust by underwriting a rights offering of $18.6 million to retire bank debt of $29.9 million.
This company was later merged into Hallwood Group.
First Pennsylvania Mortgage Trust
In 1979, Hallwood restructured First Pennsylvania Mortgage Trust, a New York Stock Exchange listed real estate investment trust owning a portfolio of diverse real estate and mortgage investments located throughout the United States by underwriting a rights offering of $20 million to retire bank debt of $47 million.
Hallwood Trust acquired control of First Pennsylvania in the transaction and later merged the company into The Hallwood Group which was listed on the New York Stock Exchange.
Major Participants in Past Hallwood Transactions:
Invesco M.I.M.
The Prudential Assurance Co. PLC
M. Rothschild & Sons Ltd.
Scottish Amicable Life Assurance Co. Ltd.
Scottish American Investment Trust PLC
G. Warburg & Co. Ltd.
Fidelity Management & Research
Hambros International
IDS Financial Services
Paribas