Dallas-based Hallwood Energy files for bankruptcy

by PegNews wire

Hallwood Energy is involved in oil and gas exploration in Texas, Louisiana, and Arkansas.

The Hallwood Group Incorporated reported on Monday that on March 1, 2009, Hallwood Energy, L.P. and certain of its affiliates, in which The Hallwood Group Incorporated (the "Company") is an investor, filed petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, in In re Hallwood Energy, L.P., et al., Case No. 09-31253.

The Company recognized losses associated with the investment through the equity method of accounting and had reduced the carrying value of its investment in Hallwood Energy L.P. to zero at December 31, 2007. Additional losses were recorded in 2008 to the extent of further investments in Hallwood Energy L.P. and the carrying value of the Company's investment remained at zero as of September 30, 2008.

Source: The Hallwood Group Incorporated

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